Q5) r = 8% (c.c.), T (option expiry) = 6 months. Assume we have the following table of option prices: Strike- Put- Calle K1 = 80- 4.40- 26.60- K1 = 90- 7.94 20.16- K1 = 100- 12.66- 14.96- a) Use Put Call Parity to identify an arbitrage. Construct the arbitrage portfolio and compute your profit.- b) If the interest rate were 1% instead of 8%, would you still have an arbitrage? If so, what would your profit be?- Q5) r = 8% (c.c.), T (option expiry) = 6 months. Assume we have the following table of option prices: Strike- Put- Calle K1 = 80- 4.40- 26.60- K1 = 90- 7.94 20.16- K1 = 100- 12.66- 14.96- a) Use Put Call Parity to identify an arbitrage. Construct the arbitrage portfolio and compute your profit.- b) If the interest rate were 1% instead of 8%, would you still have an arbitrage? If so, what would your profit be