Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here H is an option quote on IBM from the CBOE website. a . Which option contract had the most trades today? b . Which

Here H is an option quote on IBM from the CBOE website.
a. Which option contract had the most trades today?
b. Which option contract is being held the most overall?
c. Suppose you purchase one 19 Jul 125 Call option. How much will you need to pay your broker for the option contract (ignoring commissions)?
d. Suppose you sell one 19 Jun 135. How much will you receive for the option contract (ignoring commissions)?
e. The calls with which strike prices are currently in-the-money? Which puts are in-the-money?
Data table
IBM (INTL BUSINESS MACHINES)
May 232019(G)14:57 ET
\table[[May 2320,,,,,,,Bid 131.04,Ask 131.06 Size 2,,,,Vol 3,186039],[Calls,\table[[Last],[Sale]],Net,Bid,Ask,Vol,\table[[Open],[Int]],Puts,\table[[Last],[Sale]],Net,Bid,Ask,Vol,\table[[Open],[Int]]],[19 Jun 125.00,7.4,-4.8,7.45,77,2,632,19 Jun 125.00,1.32,0.945,1.24,1.28,110,7250],[19. Jun 130.00,3.85,-3.8,3.85,3.95,198,1864,19 Jun 130.00,2.6,\table[[1.78]],2.59,2.64,648,7783],[19. Jun 135.00,1.48,-2.32,1.45,1.48,319,4191,19 Jun 135.00,5.18,3.245,5.15,5.25,165,6112],[19 Jun 140.00,0.4,-0.82,0.37,0.39,1735,6764,19 Jun 140.00,9.15,4.75,9.05,9.3,4901,7313],[19Jul125.00,9.3,-4.175,9.25,9.6,25,948,19Jul125.00,2.84,1.42,2.76,2.87,911,3019],[19. Jul 130.00,6.07,-3.355,5.9,6.15,129,1111,19Jul130.00,4.5,2.15,4.4,4.6,1395,5963],[19 Jul 135.00,3.47,-2.48,3.4,3.55,186,1445,19Jul135.00,6.84,2.99,6.8,7,103,6085],[19 Jul 140.00,1.7,-1.6,1.67,1.76,404,2857,19 Jul 140.00,10.04,3.84,10.1,10.3,9,1576]]
Source: Chicago Board Options Exchange at
www.cboe.com.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance A Contemporary Application Of Theory To Policy

Authors: David N Hyman

10th Edition

053875446X, 978-0538754460

More Books

Students also viewed these Finance questions