(C) A stock with spot price is expected to pay a dividend of Din t years. European call and put options on the stock with exercise price X and maturity T>tare trading at prices c and p, respectively. The continuously compounded risk-free rate is r. i. Show that the following put-call parity relationship holds: c+Xe + De "t=p+S ii. The stock price is $20. A 3-month at-the-money European put on the stock trades at $0.75. The corresponding call trades at $1. The continuously compounded risk-free rate is 10%. Do these prices imply the existence of an arbitrage opportunity? Explain. A stock with spot price is expected to pay a dividend of Dint years. European call and put options on the stock with exercise price X and maturity T>tare trading at prices c and p, respectively. The continuously compounded risk-free rate is r. i. Show that the following put-call parity relationship holds: + De st=p+S c+Xe T