Look at the data in Table 23.2. a. What is the price of a call option with

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Look at the data in Table 23.2.

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a. What is the price of a call option with an exercise price of $1,300 and expiration in April 2018? What if expiration is in January 2019?

b. Why do you think the January 2019 calls cost more than the April 2018 calls?

c. Is the same true of put options? Why?

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Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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