The following table displays prices for call options on XYZ stock on May 31. The price of XYZ stock on May 31 is $119.50.
Expiration Month- June July August September
Strike
110 8.88 12.50 15.00 18.00
120 1.50 3.75 3.00 4.25
130 1.00 2.25 2.88 5.00
In the above table, identify the three pricing discrepancies and explain why those prices could not hold.