Consider the following American put prices. Assume the current stock price is 45, r = 9.5%, t = 0.25 for the July puts and no dividends will be paid prior to the January expiration date

Expiration Month

July October January

Strike Price 40 0.57 1.07 3.80

45 3.05 3.18 3.04

50 5.08 5.32 8.50

Find three mispricings. Explain what arbitrage restrictions on put prices are being violated and explain how you could take advantage for these mispricings.