Understanding Option Quotes Use the option quote information from Euronext Liffe shown here for Xstrata plc to answer the questions that follow. The equity is currently selling for £11.025.

(a) Are the call options in the money? What is the intrinsic value of an Xstrata plc call option?

(b) Are the put options in the money? What is the intrinsic value of an Xstrata plc put option?

(c) Looking at the quotes on their own, do you think that the market expects the price of Xstrata to increase or decrease during the period of the option? What range of prices is anticipated? Look at the share price history for Xstrata on Yahoo! Finance and find out what actually happened.
Who made a profit from their trading – the call or put holders?