Here

is an option quote on IBM from from the CBOE Web site showing options expiring in November and December 2018.

a. Which option contract had the most trades on that day?

b. Which option contract is being held the most overall?

c. Suppose you purchase one option with symbol IBM1816K125. How much will you need to pay your broker for the option (ignoring commissions)?

d. Explain why the last sale price is not always between the bid and ask prices.

e. Suppose you sell one option with symbol IBM1816W125. How much will you receive for the option (ignoring commissions)?

f. The calls with which strike prices are currently in-the-money? Which puts are in-the-money?

g. What is the difference between the option with symbol IBM1816K115 and the option with symbol IBM1821L115?

h. On what date does the option with symbol IBM1816W115 expire? In what range must IBM's stock price be at expiration for this option to be valuable?

IBM (INTL BUSINESS MACHINES) Nov 09 2018 @ 12:01 ET 122.24 -1.14 Vol 2228952 Bid 122.24 Ask 122.26 Size 1 x 2 Calls Last Sale Net Bid Ask Vol Open Puts Last Sale Net Bid Ask Vol Open Int 2018 Nov 16 115.00 (BM1816K115) 7.35 2018 Nov 16 120.00 (BM1816K120) 3.00 2018 Nov 16 125.00 (BM1816K125) 0.65 2018 Nov 16 130.00 (BM1816K130) 0.08 2018 Dec 21 115.00 (BM1821L115) 8.90 2018 Dec 21 120.00 (BM1821L120) 5.20 2018 Dec 21 125.00 (BM1821L125) 2.59 2018 Dec 21 130.00 (BM1821L130) 1.12 -1.21 -1.20 -0.49 -0.09 -1.65 -0.78 -0.56 -0.24 7.20 3.00 0.68 0.08 8.85 5.25 2.59 1.11 7.40 3.15 0.72 0.11 9.00 5.35 2.65 1.18 19 194 383 526 8 7 7 287 248 72 605 2858 4133 530 14552 7850 4491 2018 Nov 16 115.00 (BM1816W115) 2018 Nov 16 120.00 (BM1816W 120) 2018 Nov 16 125.00 (BM1816W125) 2018 Nov 16 130.00 (IBM1816W130) 2018 Dec 21 115.00 (IBM1821X115) 2018 Dec 21 120.00 (IBM1821X120) 2018 Dec 21 125.00 (BM1821X125) 2018 Dec 21 130.00 (IBM1821X130) 0.17 0.80 3.45 7.98 1.38 2.75 4.95 8.75 0.06 0.17 0.72 1.19 0.27 0.49 0.57 1.07 0.15 0.84 3.40 7.75 1.30 2.65 5.05 8.55 0.17 0.88 3.55 8.35 1.36 2.71 5.25 9.00 83 2335 148 671 3407 40 2837 72 2682 282 15803 65 7937 1 3245 Source: Chicago Board Options Exchange at www.cboe.com