Look at the data in Table 23.2.

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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Explration Date Exercise Price Call Price Put Price $ 31.10 $1,200 $132.70 April 2018 70.10 1,300 73.20 1,400 33.00 134.20 July 2018 1,200 161.70 53.55 1,300 104.00 96.00 1,400 156.05 62.55 January 2019 88.05 1,200 210.00 155.35 1,300 133.25 1,400 112.00 190.00