CALLS PUTS

STRIKE JUL AUG OCT JUL AUG OCT

$15510\mathrm{.}5011\mathrm{.}8014\mathrm{.}000\mathrm{.}201\mathrm{.}252\mathrm{.}75$

$1606\mathrm{.}008\mathrm{.}1011\mathrm{.}100\mathrm{.}752\mathrm{.}754\mathrm{.}50$

$1652\mathrm{.}705\mathrm{.}208\mathrm{.}102\mathrm{.}354\mathrm{.}706\mathrm{.}70$

$1700\mathrm{.}803\mathrm{.}206\mathrm{.}005\mathrm{.}807\mathrm{.}509\mathrm{.}00$

Part A: Compute the intrinsic values, time values, and lower bounds of the following calls. Identify any

profit opportunities that may exist. Treat these as American options for purposes of determining the

intrinsic values and time values and European options for the purpose of determining the lower bounds.

The stock is priced at $165\mathrm{.}13.$ The expirations are July $17,$ August $21,$ and October $16.$ The risk$-$free rates

are $0\mathrm{.}0516,0\mathrm{.}0550,$ and $0\mathrm{.}0588,$ respectively.

July $160$