19.1 The common stock of Teledyne has never paid a cash dividend. The stock is relatively risky. Assume that the beta for Teledyne is 1.3 and that Teledyne closed at a price of $162. Hypothetical option quotes on Teledyne are as follows:

Strike price	Apr (call)	Jul (call)	Oct (call)	Apr (put)	Jul (put)	Oct (put)
140	23.5	s	s	0.375	s	s
150	16	21	25	1	3.75	r
160	8.875	14	20	3	7	9
170	3	9	13.25	9	10	11
180	1.25	5.25	9	r	20	r

r= not traded; s= no option offered.

Based on the Teledyne data, answer the following questions: (a) Which calls are in the money? (b) Which puts are in the money? (c) Why are investors willing to pay 1.25 for the April 180 call but only 1 for the April 150 put, which is closer to the current market price? (e) The new quote on the October 160 put was 7.5. What would have been your one-day profit on the 20 contracts? (f) What is the most you could lose on these 20 contracts?

a.) ?

b.) ?

c.) ?

e.)?

f.) ?