Suppose that the S&P500 Index Spot and Forward Prices are given as follows:

Spot	3327.30
45 Day Fwd	3333.46
75 Day Fwd	3337.57

(a) A 45-day European Call option, to buy 1 unit of S&P500 for $3250, costs $65. The rate at which you can borrow or lend money is 1.5% a year. Are there any arbitrage opportunities? Justify your answer by suggesting a strategy to take advantage of it, if there is an arbitrage opportunity.

(b) For what values of the 45-day Call option price there will be NO ARBITRAGE opportunities in part (a)?