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Examine the option quotation below. There are two (2) mistakes. In this context a mistake would indicate a violation of option pricing theory. Provide a
- Examine the option quotation below. There are two (2) mistakes. In this context a mistake would indicate a violation of option pricing theory. Provide a short explanation identifying both of these two (2) mistakes. Justify your answer in no more than one or two sentences for each mistake.
Strike price ($) | Expiration month | Call price (cents) | Put price (cents) |
50 | July | 9.00 | 7.38 |
50 | October | 16.63 | 2.63 |
60 | July | 3.50 | 7.13 |
60 | October | 8.75 | 12.25 |
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