Question 6 (10 points) The price today of a European put option that matures in one year and has a strike price of $70 is $7. The underlying stock price today is $71. A dividend of $1.50 is expected in four months and another dividend of $1.50 is expected in eight months. The continuously compounded risk free rate of interest is 4% per annum for all maturities. Using put-call parity: a) Compute the price today of a European call option which matures in one year and has a strike price of $70. b) Compute the price difference today between a put and a call on the stock, when both options mature in one year, are European, and have a strike price of $75