Near market closing time on a given day, you lose access to stock prices, but some European call and put prices for a stock are available as follows:
Strike Price Call Price Put Price
$40 $11 $3
$50 $6 $8
$55 $3 $11
All six options have the same underlying and expiration date.
(i) Are these prices consistent?
(ii) Construct a portfolio that will generate a risk free arbitrage pro t if this is possible.