The price of a European put option that expires in three months and has a strike price of $50 is $5. The underlying stock price is $47. The risk-free interest rate is 6%. a). What is the price of a European call option that expires in three months and has a strike price of $50? Use the Put-Call Parity b).Explain the arbitrage opportunities in the question above if the European call price is $1, and explain the arbitrage strategy.