XYZ, is a non dividend paying stock. It is trading at $19. European puts and calls are available on an XYZ, both with a strike of $30 and 3 months to expiration. The puts cost $3 and the calls cost $3. Interest rates are at 10%.

a) Identify the arbitrage opportunity open to a trader and show how much money the trader would make per contract traded.

b) Looking at these option prices, is there any reason to believe that the mispricing is in the puts or in the calls? Briefly explain.

c) Does Put Call Parity hold if the calls and puts have different expiration dates? Briefly explain.