For all questions, interest (r) and dividend (d) rates are continuously compounded unless specified otherwise.

please do it properly with excel or hand in full clear explanation format

Q5) r = 8% (c.c.), T (option expiry) = 6 months. Assume we have the following table of option prices: Strike Put Call K1 = 80 4.40 26.60 K1 = 90 7.94 20.16 K1 = 100 12.66 14.96 a) Use Put Call Parity to identify an arbitrage. Construct the arbitrage portfolio and compute your profit. b) If the interest rate were 1% instead of 8%, would you still have an arbitrage? If so, what would your profit be? Q5) r = 8% (c.c.), T (option expiry) = 6 months. Assume we have the following table of option prices: Strike Put Call K1 = 80 4.40 26.60 K1 = 90 7.94 20.16 K1 = 100 12.66 14.96 a) Use Put Call Parity to identify an arbitrage. Construct the arbitrage portfolio and compute your profit. b) If the interest rate were 1% instead of 8%, would you still have an arbitrage? If so, what would your profit be