Suppose that prices of European put options (with the same expiry time) are as shown in the table below. Strike 50 62 72 Put 2 11 15 Find the convexity violation in these prices, and show how you could exploit it (using whole numbers of options) to gain an arbitrage profit.

2. 5 marks] Suppose that prices of European put options (with the same expiry time) are as show n in the table below. Strike 50 62 72 Put 2 11 15 Find the convexity violation in these prices, and show how you could exploit it (using whole numbers of options) to gain an arbitrage profit