(P-C Parity Arbitrage) A European Call price is C= $ 3.70, on a ZERO dividend. A similar Put price is P= $ 3.00. The stock price and strike price are both 60, T= 1 year, and R = 2%.

(a) Determine what the PUT Price SHOULD be.

(b) How much should your arbitrage profit be?

(c) Focusing on Real vs. Synthetic PUT, specify ALL time 0 trade details.

(d) At expiration in 1 year at T, show the ending details { both if S is HIGH or LOW }.