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You are an options trader for a hedge fund. Your assistant prepared the following sheet containing the prices of various options on January 31. Assume
You are an options trader for a hedge fund. Your assistant prepared the following sheet containing the prices of various options on January 31. Assume the options expire at the end of the expiration month. The risk-free interest rate is 8% per annum.
Appraise the options and identify three (3) pricing discrepancies. You may use the Excel program to help you uncover the pricing discrepancies. Show how you would profit from them. Use the following format to answer this question. Pricing Discrepancy: Strategy to profit from pricing discrepancy:
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