As a dealer on the options trading desk it is your job to monitor option prices. One day, while scanning the equity call prices for the ABC company, you notice discrepancies between several option prices and arbitrage restrictions for option prices. The prices are presented in the table below.

Identify three (3) different apparent pricing discrepancies, and discuss how you can realise arbitrage profits.

Stock price Exercise price Expiration Months June July August September 119.50 110 8.75 12.50 15.00 18.00 119.50 120 1.50 3.75 3.00 4.25 119.50 130 1.00 2.25 2.75 5.00 Stock price Exercise price Expiration Months June July August September 119.50 110 8.75 12.50 15.00 18.00 119.50 120 1.50 3.75 3.00 4.25 119.50 130 1.00 2.25 2.75 5.00