C) Find two pairs of options for which the relationship (1) (2) 2 1 2 > 1 DOES NOT HOLD and thus arbitrage opportunities exist. Calculate the minimum arbitrage profit. Pair 1: Strikes __________and ________; Minimum Profit ___________ Pair 2: Strikes __________and ________; 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.

D). 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 ________, ________, and ________. Maximum profit ____________ and minimum profit ___________ Triple 1: Strikes ________, ________, and ________. Maximum profit ____________ and minimum profit ___________