Say a European call option, FB stock as the underlying asset, is priced at $8.5. The strike price of the option is $175 and the maturity is in 6 months. The current stock price of FB is $176 and the annualized standard deviation of the stocks return is 18%. The annual risk-free interest rate is 3.5% (you can both lend and borrow at this rate). A) According to no arbitrage principle (put-call parity), find out the European put option price with same underlying asset, same maturity and strike price. B) If the put option is priced at $7.5, explain the investment strategy that would benefit you from the arbitrage opportunity. C) If the put option is priced at $2.5, explain the investment strategy that would benefit you from the arbitrage opportunity. For Both B and C: a. Clearly specify your investment strategy. b. Show the cash flow at time 0. c. Show the cash flow at maturity. d. Explain why it is an arbitrage.