Problem 1 The common stock of firm A has been trading in a narrow range around $10 per share for months, and you believe it is going to stay in that range for the next 3 months. The price of a 3-month call option with a strike price of $10 is $0.41. The risk-free interest rate is 1% per year a. pt What must be the price of a 3-month put option at a strike price of $10? b. [1pt What would be a simple options strategy using a put and a call to exploit your conviction about the stock price's future movement? . (Apts) How can you create a position involving a put, a call, and riskless lend- ing/borrowing that would have the same payoff structure as buying the stock now? What is the net cost of establishing that position? d. [4pts Is there any arbitrage opporunity if the price of 3-month put option at a strike price of $10 is SO.43? If any, show the strategy to exploit this oppotunity