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(Solved): 9. Town and Country Travel has an active liquid option market. In examining the call prices for Town ...



9. Town and Country Travel has an active liquid option market. In examining the call prices for Town and Country Travel s American options, you notice several discrepancies between several option prices and basic option pricing relationships. Closing Prices Town and Country Travel Call Options February 27, 2024 Close Strike Option Expiration Month Close strike June July August September 119 110 8 12 15 18 119 120 1 3 4 4 119 130 1 2 2 5 Identify at least three different apparent pricing discrepancies in the above table. Identify which of the basic option pricing relationships each discrepancy violates.



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