c. Find three pairs of options for which the relationship C(K1) - C(K2) S K2 K1 for K2 > K1 DOES NOT HOLD and thus arbitrage opportunities exist. Calculate the minimum arbitrage profit. Pair 1: Strikes Pair 2: Strikes Pair 3: Strikes and and and ; Minimum Profit Minimum Profit ; Minimum Profit In general, if the relationship does not hold, we (buy/sell) the option with high strike price, (buy/sell) the option with low strike price, and (lend/Borrow) to realize arbitrage profit Find two triples of options for which, one can construct a risk-free long butterfly strategy and calculate the maximum and minimum profit. Triple 1: Strikes Triple 1: Strikes , and Maximum profit and minimum profit , and Maximum profit and minimum profit c. Find three pairs of options for which the relationship C(K1) - C(K2) S K2 K1 for K2 > K1 DOES NOT HOLD and thus arbitrage opportunities exist. Calculate the minimum arbitrage profit. Pair 1: Strikes Pair 2: Strikes Pair 3: Strikes and and and ; Minimum Profit Minimum Profit ; Minimum Profit In general, if the relationship does not hold, we (buy/sell) the option with high strike price, (buy/sell) the option with low strike price, and (lend/Borrow) to realize arbitrage profit Find two triples of options for which, one can construct a risk-free long butterfly strategy and calculate the maximum and minimum profit. Triple 1: Strikes Triple 1: Strikes , and Maximum profit and minimum profit , and Maximum profit and minimum profit