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7. [3 points) Suppose Brady is considering a European put option that expires in 3 months. It is currently priced at $1.77. The option has a strike price of $62.50 and the current underlying share price is $58.35. If the risk-free rate is 5% and there are no dividends: (1) is there an arbitrage opportunity? (2) if so, why? (3) if so, what actions should Brady take (i.e., trades)? (4) if the stock price at maturity turned out to be $67, what is Brady's profit? (5) if the stock price at maturity turned out to be $58, what is Brady's profit