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Question 1. - Part (C) [Put-Call Parity] Part C is based on the following information: European call option price (c) 25 European put option price

Question 1. - Part (C) [Put-Call Parity] Part C is based on the following information: European call option price (c) 25 European put option price (p) 10 Spot price (S0) 110 Strike price (K) 90 Risk-free rate (r) 4% Time-to-maturity (T) 1 Assume no dividend. Given the above information, apply the Put-Call Parity and verify if there is an arbitrage opportunity. If there is an arbitrage opportunity, discuss how you can construct an arbitrage strategy using the above information.

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