Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $77.

a. Are the call options in the money? What is the intrinsic value of an RWJ Corp. call option?

b. Are the put options in the money? What is the intrinsic value of an RWJ Corp. put option?

c. Two of the options are clearly mispriced. Which ones? At a minimum, what should the mispriced options sell for? Explain how you could profit from the mispricing in each case.

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Calls Puts Option and Strike NY Close Expiration Price Vol. Last Vol. Last RWJ Mar 75 230 1.90 160 .80 Apr 75 170 6.00 127 1.40 Jul 75 139 8.05 43 3.90 Oct 75 60 10.20 11 3.65