Below is a selection of Equity Options contracts traded in London

10.a What is the Intrinsic Value of the BG Group Sept 1100 Calls? Show your workings (2 marks)

10.b What is the Intrinsic Value of the BHP Billiton Oct 1950 Puts? Show your workings (2 marks)

10.c What is the Time Value of Br Airways Nov 215 Calls? Show your workings (2 marks)

10.d Why is the BP Sep 380 Call Option so much more expensive than the Sep 380 Put Option? (2 marks)

10.e What is the Time Value of the BHP Billiton Sep 1900 Calls? Show your workings (2 marks)

Option Sep Oct Nov Sep Oct Nov BG Group 1050 48.5 (*1078) 1100 25 67 84.5 19.5 37 54.5 43 61 46.5 64.5 82 BHP Billiton 1900 38 (*1903) 1950 18.5 69 101.5 61 93.5 125 48 - 93.5 123 BP (*388.75) 380 17.5 24.5 31.5 8 15.25 22 390 11.75 18.75 26 12.75 19.5 26.25 Br Airways 215 8.25 11.75 16 4 8.75 12.75 (*220) 220 5.25 9.25 13.5 6.25 11.25 15.5 Option Sep Oct Nov Sep Oct Nov BG Group 1050 48.5 (*1078) 1100 25 67 84.5 19.5 37 54.5 43 61 46.5 64.5 82 BHP Billiton 1900 38 (*1903) 1950 18.5 69 101.5 61 93.5 125 48 - 93.5 123 BP (*388.75) 380 17.5 24.5 31.5 8 15.25 22 390 11.75 18.75 26 12.75 19.5 26.25 Br Airways 215 8.25 11.75 16 4 8.75 12.75 (*220) 220 5.25 9.25 13.5 6.25 11.25 15.5