The current stock price of ABC Corporation is $53.50. ABC Corporation has the following put and call option prices that expire 6 months from today. The risk-free rate of return is 5% and the expected return on the market is 11%:

Exercise Price	Put Price	Call Price
50	$1.50	$5.75
55	$3.25	---

What should the price be of a call option that expires 6 month from today with an exercise price of $55? (5 points)

What is the value of a synthetic stock created with put and call options that expire in 6 months with an expiration price of $50? (5 points)

Is there any arbitrage opportunity? If there is, how to create the position? (5 points)