In the questions that follow, use the Last (meaning last sale) column to answer questions which involve option pricing What was the premium on the December 20 FB 190 call, i e the Facebook call option which expires on December 20, 2019, and has a strike price of $190 How much would an investor who wanted to buy 1 contract of this option have to spend (before considering any commission or fees) What is the formula for the intrinsic value of a call What was the intrinsic value of the Dec 20 FB 190 call Was this option in the money or out of the money What was the time value of this option Was the Dec 20 FB 195 call in or out of the money What was the intrinsic value of this option What was the time value of this option What was the premium on the Dec 20 FB 195 put Was this option in or out of the money What was the intrinsic value of this put What is the time value What was the intrinsic value of the Dec 20 FB 190 put Was this option in or out of the money What was the options time value Draw a hockey stick diagram for a short position in the Dec 20 FB 190 call Draw a hockey stick diagram for a long position in the Dec 20 200 put On Wednesday, Nov 13, 2019, Facebook stock (symbol FB) closed at $193 21 a share, down $1 28 on the day Consider the following chart giving the premium as of close of trading on that day on various options on Facebook shares FB (FACEBOOK INC) Nov 13, 2019 18 36 ET (Delayed) LAST 193 21 CHANGE 1 28 ( 0 66 ) Calls Last Net 11 16 1 14 7 8 0 95 5 1 0 75 3 02 0 605 BID 193 2 ASK 193 31 VOL 10,998,531 12 20 2019 Puts Bid Ask Vol Strike Last Net 11 15 11 3 183 FB 185 000 2 64 0 235 7 75 79 6,556 FB 190 000 4 2 0 325 5 5 1 1,882 FB 195 000 6 5 0 55 2 99 3 05 5,285 FB 200 000 9 4 0 65 Bid Ask 2 61 2 69 4 15 4 3 6 4 6 55 9 35 9 55 Vol 328 7,813 600 155 On Wednesday, Nov 13, 2019, Facebook stock (symbol FB) closed at $193 21 a share, down $1 28 on the day Consider the following chart giving the premium as of close of trading on that day on various options on Facebook shares FB (FACEBOOK INC) Nov 13, 2019 18 36 ET (Delayed) LAST 193 21 CHANGE 1 28 ( 0 66 ) Calls Last Net 11 16 1 14 7 8 0 95 5 1 0 75 3 02 0 605 BID 193 2 ASK 193 31 VOL 10,998,531 12 20 2019 Puts Bid Ask Vol Strike Last Net 11 15 11 3 183 FB 185 000 2 64 0 235 7 75 79 6,556 FB 190 000 4 2 0 325 5 5 1 1,882 FB 195 000 6 5 0 55 2 99 3 05 5,285 FB 200 000 9 4 0 65 Bid Ask 2 61 2 69 4 15 4 3 6 4 6 55 9 35 9 55 Vol 328 7,813 600 155

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In the questions that follow, use the Last (meaning last sale) column to answer questions which involve option pricing. What was the premium on the

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In the questions that follow, use the Last (meaning last sale) column to answer questions which involve option pricing.

What was the premium on the December 20 FB 190 call, i.e. the Facebook call option which expires on December 20, 2019, and has a strike price of $190?

How much would an investor who wanted to buy 1 contract of this option have to spend (before considering any commission or fees)?

What is the formula for the intrinsic value of a call? What was the intrinsic value of the Dec. 20 FB 190 call? Was this option in the money or out of the money? What was the time value of this option?

Was the Dec. 20 FB 195 call in or out of the money? What was the intrinsic value of this option? What was the time value of this option?

What was the premium on the Dec. 20 FB 195 put? Was this option in or out of the money? What was the intrinsic value of this put? What is the time value?

What was the intrinsic value of the Dec. 20 FB 190 put? Was this option in or out of the money? What was the options time value?

Draw a hockey stick diagram for a short position in the Dec. 20 FB 190 call.

Draw a hockey stick diagram for a long position in the Dec. 20 200 put.

On Wednesday, Nov. 13, 2019, Facebook stock (symbol FB) closed at $193.21 a share, down $1.28 on the day. Consider the following chart giving the premium as of close of trading on that day on various options on Facebook shares: FB (FACEBOOK INC) Nov 13, 2019 @ 18:36 ET (Delayed) LAST 193.21 CHANGE -1.28 (-0.66%) Calls Last Net 11.16 -1.14 7.8 -0.95 5.1 -0.75 3.02 -0.605 BID 193.2 ASK 193.31 VOL 10,998,531 12/20/2019 Puts Bid Ask Vol Strike Last Net 11.15 11.3 183 FB 185.000 2.64 +0.235 7.75 79 6,556 FB 190.000 4.2 +0.325 5 5.1 1,882 FB 195.000 6.5 +0.55 2.99 3.05 5,285 FB 200.000 9.4 +0.65 Bid Ask 2.61 2.69 4.15 4.3 6.4 6.55 9.35 9.55 Vol 328 7,813 600 155 On Wednesday, Nov. 13, 2019, Facebook stock (symbol FB) closed at $193.21 a share, down $1.28 on the day. Consider the following chart giving the premium as of close of trading on that day on various options on Facebook shares: FB (FACEBOOK INC) Nov 13, 2019 @ 18:36 ET (Delayed) LAST 193.21 CHANGE -1.28 (-0.66%) Calls Last Net 11.16 -1.14 7.8 -0.95 5.1 -0.75 3.02 -0.605 BID 193.2 ASK 193.31 VOL 10,998,531 12/20/2019 Puts Bid Ask Vol Strike Last Net 11.15 11.3 183 FB 185.000 2.64 +0.235 7.75 79 6,556 FB 190.000 4.2 +0.325 5 5.1 1,882 FB 195.000 6.5 +0.55 2.99 3.05 5,285 FB 200.000 9.4 +0.65 Bid Ask 2.61 2.69 4.15 4.3 6.4 6.55 9.35 9.55 Vol 328 7,813 600 155