Your company wants to invest its cash surplus of $$1$m$.$ in a GIC $($i$.$e$.,$ certificate of

deposit$)$ for a period of $6$ months. The best GIC rate that it could find is $5\mathrm{.}5\%$ p$.$a$.$ semi$-$annual

compounding. The treasurer of your company has asked you to explore the possibility of

creating a synthetic lending transaction by a portfolio of options and stocks. You observed the

following information:

Security Price

$6-$month European call whose exercise price $=$ $$32$ $$2\mathrm{.}10$

$6-$month European put whose exercise price $=$ $$32$ $$2\mathrm{.}92$

the underlying $($non$-$dividend$-$paying$)$ stock $$30$

Based on the above observations, will your company be better off with the GIC or the synthetic

lending? If the synthetic lending is better, please also provide the details of how it can be

created in order to lend $$1$m$.$