Given the following:
S=$68, C=$15, Rf =10%, X=$60, and time to maturity of call = 3 month.
Q1. What is the value of a put with the same characteristics as the call above?
Q2. Suppose that the put in part "1" is trading for $ 3.00: Indicate clearly the transactions you should undertake in order to create a risk-free arbitrage profit. What is the arbitrage profit? (Make sure to show the cash flows)