Question: Find the 2 different arbitrage opportunities in this table. Explain why these are arbitrage opportunities. Explain (no need for a table) how to capture the

  1. Find the 2 different arbitrage opportunities in this table. Explain why these are arbitrage opportunities. Explain (no need for a table) how to capture the profit on these opportunities.

Premiums

Exercise Price

Calls

Puts

T

risk free rate

150

5.5799

2.8909

0.0822

5.00%

155

3.4278

5.0017

0.0822

5.00%

160

1.2445

10.1298

0.0822

5.00%

Stock price

155

American Options

SHOW YOUR WORK FOR ANY CALCULATIONS. Please clearly explain the answer.

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