Question #36 (10 points) Assume the strike price of a call option is $15. The current market price of the underlying stock is $18.75. The option expires in 6 months and the risk-free rate is 6%. The price of the call option is $3.50. No dividends are expected. (1) Why is there an arbitrage opportunity? Be sure to provide numerical support. [2 points) (2) What action(s) should the investor take given the arbitrage opportunity? [2 points) (3) What would be an investor's profit if the stock price at maturity was less than the strike price (use a price of $12.25)? (3 points) (4) What would be an investor's profit if the stock price at maturity was greater than the strike price (use a price of $21.05)? (3 points) Note: please show your work and provide numerical support for your answers