The common stock of firm A has been trading in a narrow range around $55 per share for months, and you believe it is going to stay in that range for the next 3 months. The price of a 3-month call option with a strike price of $55 is $3.35. The risk-free interest rate is 1% per year

a. [1pt] What must be the price of a 3-month put option at a strike price of $55?

b. [1pt] What would be a simple options strategy using a put and a call to exploit your conviction about the stock prices future movement?