MC 1-10: 1.5 Points each Q1: Show whether and how you can take advantage of the arbitrage opportunity, if any, in the following case (assume all options are European): Stock Price=$94 3-month call options with strike price $97 3-month out option with strike price $98 1-Year risk-free is 3% a) The put option is trading $5 and there is another put option with an exercise price of $100 trading at $8.5