The price of a stock, which pays no dividends, is $20 and the strike price of a 6-month European call option on the stock is $15. The 6-month risk-free rate is 5% (continuously compounded). a.) What is the lower bound for the option such that there are arbitrage opportunities if the price is below the lower bound? b.) Suppose that the market price of the call option in this question is $4.00. Explain how to execute the arbitrage and compute the arbitrage profit if the stock price at expiration is greater than $15.4 The stock price, which pays no dividends, is $30 and the strike price of a 3-month European put option is $35. The 3-month risk-free rate is 5% (continuously compounded). a.) What is the lower bound for the option such that there are arbitrage opportunities if the price is below the lower bound? b.) Suppose that the market price of the put option in this question is $3.00 Explain how to execute the arbitrage and compute the arbitrage profit if the stock price at expiration is less than $35