2. 2.

Understanding option quotes [LO 24.1] Use the option quote information shown here to answer the questions that follow. The shares are currently selling for $3.065

1. Are the call options in the money? What is the intrinsic value of the CSR call options?

2. Are the put options in the money? What is the intrinsic value of the CSR put options?
3. Assume the CSR4G9 put option is mispriced. Explain how you could profit from a mispricing.

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Code Expiry date CSR4G9 17/12/2020 Put CSR4N9 17/12/2020 Call CSR4U9 17/12/2020 Call CSR4Z9 17/12/2020 Put P/C Exercise Bid Offer Last Volume 3.37 0.815 0.815 0 Open Margin interest price 130 0.815 3.97 0.255 0.255 0 5 0.22 4.16 0.215 0.215 0 61 0.18 4.36 1.57 1.57 0 1000 1.565