Please help provide a correct solution with detailed explanation to part (e) - (f). The same part (a) - (d) has been posted on Chegg feel free to answer those part on the other post.

It is November 12, 2020 and you are looking at the screen reported below. On a different screen (not shown) you see that the S&P500 dividend yield is 1.80% (per annum, continuously compounded) and that the USD Libor is at 0.1403% (also per annum and continuously compounded) Consider the 3575 December 4th. Call and Put. from the screenshot below. Your friend Howard Wolowitz, a well-known guru in the options market, tells you that over the life of the two options, the S&P500 will pay a cumulative dividend with a present value (as of today, November 12h.) of $9.0454 ASPX (STANDARD & POORS 500 INDEX) Nov 12, 2020 @ 01:12 ET (Delayed) BID 3529.31 ASK 3638.2 VOL LAST 3572.66 CHANGE +27.1299 (+0.76%) Filters by Volume: All Expiration Type: All Options Range: Near the Money Expiration: 2020 December View Chain Options Chain Total Records: 32 Calls Last Net Bid IV Delta Gamma Int Delta Gamma Int Ask Vol 68.8 2 65.06 +4.81 68 0.1737 0.5348 0.0027 0 0.0023 2 12/02/2020 A Puts Strike Last Net Bid Ask Vol M SPXW 3565.000 60.2 -18.4 58.1 58.9 15 0.1993 SPXW 3570.000 63.1 -17,8 60 60.8 100.1983 SPXW 3575.000 63.78 -19.52 62 62.9 3 0.1972 SPXW 3580.000 70.9 -14.75 64.1 65 1 1 0.196 -0.4673 -0.479 55.7 0 65 65.70 0.1725 0.5214 0.0027 18 0.0023 1 58.9 0.5079 16 -0.4908 0.0024 2 +3.95 62 62.7 20 0.1715 +8.53 59.1 59.8 6 0.1704 0.0027 0.0027 58.93 0.4942 9 -0.5027 0.0024 0 12/04/2020 A Puts Strike Last Net Bid Ask Vol IV Gamma Int Calls Last Net Bid Ask Vol IV Delta Gamma Int 70.87 +6.77 723 73 2 0.179 0.5316 0.0025 27 67.63 +623 69.3 69.9 21 0.178 0.5192 0.0025 48 60.23 +1.53 66.3 66.9 123 0.1768 0.5067 0.0025 1251 73.5 -9.65 0.0022 Delta -0.4698 -0.4807 SPXW 3565.000 SPXW 3570,000 SPXW 3575.000 13 63.1 63.98 0.2038 65 65.9 23 0.2024 0.0022 29 67.47 -17.98 71.3 -16.5 67 67.9 25 0.2012 -0.4918 0.0022 39 Please note: IV in the table represent the annualized implied volatility of the option. In part a, b and c, please use the discrete dividend amount provided. In part e, please use the dividend yield provided. For all answers, please show your work a) What are the respective time values and intrinsic values of the two options you are considering? b) Are they both trading within their arbitrage bounds? Round to 2 decimal digits at each step. c) Does put-call parity hold for those two options? d) Ignoring transactions costs, do you see arbitrage opportunities involving those two options? e) Price the 3575 December 4th. call according to the BSM model (use calendar days). f) How does the BSM price compare to the market price of the call? It is November 12, 2020 and you are looking at the screen reported below. On a different screen (not shown) you see that the S&P500 dividend yield is 1.80% (per annum, continuously compounded) and that the USD Libor is at 0.1403% (also per annum and continuously compounded) Consider the 3575 December 4th. Call and Put. from the screenshot below. Your friend Howard Wolowitz, a well-known guru in the options market, tells you that over the life of the two options, the S&P500 will pay a cumulative dividend with a present value (as of today, November 12h.) of $9.0454 ASPX (STANDARD & POORS 500 INDEX) Nov 12, 2020 @ 01:12 ET (Delayed) BID 3529.31 ASK 3638.2 VOL LAST 3572.66 CHANGE +27.1299 (+0.76%) Filters by Volume: All Expiration Type: All Options Range: Near the Money Expiration: 2020 December View Chain Options Chain Total Records: 32 Calls Last Net Bid IV Delta Gamma Int Delta Gamma Int Ask Vol 68.8 2 65.06 +4.81 68 0.1737 0.5348 0.0027 0 0.0023 2 12/02/2020 A Puts Strike Last Net Bid Ask Vol M SPXW 3565.000 60.2 -18.4 58.1 58.9 15 0.1993 SPXW 3570.000 63.1 -17,8 60 60.8 100.1983 SPXW 3575.000 63.78 -19.52 62 62.9 3 0.1972 SPXW 3580.000 70.9 -14.75 64.1 65 1 1 0.196 -0.4673 -0.479 55.7 0 65 65.70 0.1725 0.5214 0.0027 18 0.0023 1 58.9 0.5079 16 -0.4908 0.0024 2 +3.95 62 62.7 20 0.1715 +8.53 59.1 59.8 6 0.1704 0.0027 0.0027 58.93 0.4942 9 -0.5027 0.0024 0 12/04/2020 A Puts Strike Last Net Bid Ask Vol IV Gamma Int Calls Last Net Bid Ask Vol IV Delta Gamma Int 70.87 +6.77 723 73 2 0.179 0.5316 0.0025 27 67.63 +623 69.3 69.9 21 0.178 0.5192 0.0025 48 60.23 +1.53 66.3 66.9 123 0.1768 0.5067 0.0025 1251 73.5 -9.65 0.0022 Delta -0.4698 -0.4807 SPXW 3565.000 SPXW 3570,000 SPXW 3575.000 13 63.1 63.98 0.2038 65 65.9 23 0.2024 0.0022 29 67.47 -17.98 71.3 -16.5 67 67.9 25 0.2012 -0.4918 0.0022 39 Please note: IV in the table represent the annualized implied volatility of the option. In part a, b and c, please use the discrete dividend amount provided. In part e, please use the dividend yield provided. For all answers, please show your work a) What are the respective time values and intrinsic values of the two options you are considering? b) Are they both trading within their arbitrage bounds? Round to 2 decimal digits at each step. c) Does put-call parity hold for those two options? d) Ignoring transactions costs, do you see arbitrage opportunities involving those two options? e) Price the 3575 December 4th. call according to the BSM model (use calendar days). f) How does the BSM price compare to the market price of the call