According to the put-call parity, the following condition must be met for the call price
A)According to the put-call parity, the following condition must be met for the call price to be equal to the put price, when all the other factors are the same:Both call and put must be American style optionBoth options must meet the lower-bound and upper-bound conditionsExercise price should be equal to forward pricePut-call parity means put price and call price are the sameB) A European call option and a European put option on a stock both have a strike price of $45 and expire in 6 months. Currently, the call price is $10 and the put price is $5 in the market. The risk-free rate is 2% per annum, and the current stock price is $50. Identify the arbitrage opportunity open to the trader. All the interest rates are with continuous compounding.Buy call, sell put, sell stockBuy call, sell put, buy stockSell call, buy put, buy stockSell call, buy put, sell stock