Q3. The current market price of Apple stocks MP, $184.92 per share. Current market premiums for a put options with strike price SP 185.00 is P$5.70 per share. Current interest rate for a pure discount bond is r-o.75%. Assume that the time to expiration T-1 year. Calculate the fair premium for the call option with the same strike price using the parity relationship for stock options. (5 points) A. put-call B. The call option on Apple stocks with strike price SP $185.00 per share is currently trading at $6.95 per share, and there is no barrier to arbitrage. Is there an opportunity for arbitrage profits? If there is such an opportunity, calculate the returns from appropriate arbitrage position and the net profit using the table below. In the first column of the table indicate your positions in the market for the arbitrage activity. In the second column show immediate cash flows. And in the last two columns show cash flow at maturity. (10 points) Cash Flow at Maturity Immediate Cash Flow Transactions If MPr SP Call/Put CallPut Synthetie: Net Cash Flow (arbitrage Profit per share)