If the call option expires in six months, the value of the option is likely to be lower than the difference in the stock price and exercise price of the call option at expiration. If you had a put option on the first of the month with an exercise price of $45 and if the option also expires on the first, the value of the option would be $5 . If the put option expires in six months and the market expects the stock price to decrease, the value of the option is likely to increase Now suppose you have another call option and a put option. The selling price of Parrot's stock is $50 per share on the first day of this month and the exercise price for both the call and put options is $60. If the exercise price of the call option is $60 and the option expires on the first, the value of the option is If the call option expires in six months and the market expects the stock price to increase, the value of the call option is likely to If the exercise price of the put option is $60 and the option expires on the first, the value of the option is If the put option expires in six months and the market expects the stock price to increase, the value of the put option is likely to increase The Chicago Board Options Exchange (CBOE) is one of the world's largest options exchanges. CBOE and other options exchanges trade contracts that give buyers and sellers the right to trade investment assets at a specific price within a specific time period. A call option gives the option holder the right to sell an asset at a fixed price during a particular period. The fixed price that the asset may be sold at is called the exercise price. The following table shows the options quotation in U.S. dollars for Parrot Transport Corp. for June 30 of this year. Call-Last Quote September Put-Last Quote September Option Closing Price Strike Price $51.00 $5.00 $5.50 1. $47.00 $47.00 2 $42.00 $7.50 $3.00 $4.00 $6.50 3 $47.00 $53.00 If you could exercise the options listed any time before the expiration date (the third Friday of September), then these options would be European options. Assume that the options listed in the table are American options. Which of the put options for Parrot Transport Corp. listed in the table are in-the- money on June 30? O Option 1 and option 3 O Only option 2 O All of the options None of the options The Parrot Transport Corp. stock was selling at $50 per share on the first day of this month. If you had a call option on the first of the month with an exercise price of $45 and if the option also expires on the first, the value of the option would be $0