When the non-dividend paying stock price is $165.13, the strike price is $165, the risk-free rate is 5.71%, the volatility is 21% and the time to maturity is 102 days(T=102/365=0.2795), we can simply calculate the theoretical fair price of a European call option on the stock as following: d1 = 0.21, d2 = 0.10, N(0.21) = 0.5832, and N(O.10) = 0.5398. Finally, call option fair value is calculated as C = 165.13(0.5832) - 165e-0.0571(0.2795)(0.5398) = 8.647. a. Using the same set of information above, please calculate the theoretical fair price of a European put option on the stock? b. Given the current market price of option is $7, how would you recommend a trading strategy