The common stock of Company XLT and its derivative securities currently trade in the market at the following prices and contract terms:Stock XLT price 21.50 and exercise price -0-Call option on stock XLT price 5.50 and exercise price 21.00Put option on stock XLT 4.50 and exercise price 21.00Both of these options will expire 91 days from now and the annualized yield for 91 day Treasury bill is 3.0% A. Briefly explain how to construct a synthetic Treasury bill position. B. Calculate the annualized yield for the synthetic Treasury bill in Part A using the market price data provided. C. Describe the arbitrage strategy implied by the difference in yields for the actual and synthetic T-bill positions. Show the net, riskless cash flow you could generate assuming a transaction involving 21 actual T-bills and 100 synthetic T-bills. D. What is the net cash flow of this arbitrage strategy at the option expiration date, assuming that Stock XLT trades at 23.00 at expiration three months from now