You gather the following information from the Wall Street Journal: Intel's stock is selling for $13.50,the risk-free rate is 4% and a put option on Intel is selling for $4.00 matures in one year and has anexercise price of $15.

a)Calculate the equilibrium value of a call option on Intel that has an exercise price of $15 and matures in one year.

b) Assume the Call option is selling for $4.00, devise a pure arbitrage.