Suppose: S₀ = 63, X₁ = 60, X₂ = 65, T₁ = .0959, T₂ = .1507, r₁ = .0235, r₂ = .0248

For each of the following conditions on option price, a) show the boundary condition that has been violated; b) state the positions you would take today to arbitrage, show the cash flow from each position taken, show the net cash flow from the positions taken; c) state the positions you would take to unwind the arbitrage given asset prices, show the cash flow from each, show the net cash flow from unwinding the arbitrage positions.

1)C_e(S,T₂,X₁) = 3.18 and S_T2 = 58.25, S_T2 = 64.5

2)P_a(S,T₁,X₂) = 3.68 and P_a(S,T₂,X₂) = 3.61; and S_T1 = 61.5, S_T1 = 66.25

3)P_e(S,T₂,X₁) = 2.39 and P_e(S,T₂,X₂) = 2.35; and S_T2 = 57.5, S_T2 = 62.25, S_T2 = 68

4)C_e(S,T₂,X₁) = 5.82 and C_e(S,T₂,X₂) = .81; and S_T2 = 57, S_T2 = 63, S_T2 = 67

5)P_e(S,T₂,X₁) = .72 and C_e(S,T₂,X₁) = 3.86; and S_T2 = 56.5, S_T2 = 63, S_T2 = 66.5