1. Suppose the price of a non-dividend paying stock is $50. There exist European call and put options on the stock with one year to maturity and the strike price $50. The call is worth $4.5 and the put is worth of $4. The simple risk-free interest rate is 4% per annum. What is the implied interest rate for the synthetic bond based on put-call parity?
2. Suppose the price of a non-dividend paying stock is $50. There exist European call and put options on the stock with one year to maturity and the strike price $50. The call is worth $4.5 and the put is worth of $4. The simple risk-free interest rate is 4% per annum. What is the cost to construct a synthetic call position based on put-call parity?
3. Suppose the price of a non-dividend paying stock is $50. There exist European call and put options on the stock with one year to maturity and the strike price $50. The call is worth $4.5 and the put is worth of $4. The simple risk-free interest rate is 4% per annum. Show the cash flow from an arbitrage between synthetic and actual call in the following table

Transaction	Current date	Expiration date T S(T) K	Expiration date T S(T) > K
Net