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 Explain how to create a short synthetic put You must prove your answer SHOW YOUR WORK TO GET CREDIT FOR ANY CALCULATIONS

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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

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

Explain how to create a short synthetic put. You must prove your answer.

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