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.

Expiration Months June Stock price Exercise price 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 Expiration Months June Stock price Exercise price 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