***This is from Investment and Financial Mathematics (IFM) course for Actuaries. Please give handwritten solution with ALL steps shown plus with description because I need to understand the process. I will give "thumbs-up" for clear and correct solution. Thanks in advance!***

Two 6-month European put options on a stock are available with the following strike prices and premiums: Strike Price 35 45 Premium 5 4 (i) The current stock price is 47. (ii) The continuously compounded risk-free rate is 0.05. You take advantage of arbitrage by selling a 35-strike put and buying 45-strike puts, so that the next cost is 0. After six months, the stock price is 32. Calculate your total profit after 6 months, including interest. (Answer: 13.25)