Look at the Facebook option quotes in Figure 14.1 B , and focus on the call and put options with a strike price of $80. Can you use put-call parity to infer what the market price of Facebook stock must have been when these option prices were quoted? To keep things simple, assume the options expire in one month, and that the risk-free rate at the time was 0%. (Hint: To use put-call parity, you need to find the market price of a risk-free, zero-coupon bond with a face value equal the strike price of the options.) The market price is $ . (Round to the nearest cent.) 1 Data Table FIGURE 14.1 Quotations for Facebook Stock Options The quotes for calls and puts of a specified expiration period are listed down In addition to the last price the option traded at for the day and its end-of-day from the previous day's last transaction price is shown. (Source: Data from ht accessed July 6, 2015.) Option Chain Most Actives Greeks FB Options: Composite Calls & Puts Near the Money Type: Mc Jul 15| Aug 15 Sep 15 Oct 15 Nov 15 | Dec 15 Jan 16 Jan 17 Option Chain for Facebook, Inc. (FB) Calls Last Chg Bid Ask Vol Open Int Root Strike Puts Last Aug 21, 2015 8.40 -0.20 8.35 8.50 233 3142 FB 80 Aug 21, 2015 1.22 Aug 21, 2015 6.60 -0.10 6.50 6.60 109 5 118 FB 82.5 Aug 21, 2015 1.85 Aug 21, 2015 4.90 -0.20 4.90 4.95 233066167 FB 85 Aug 21, 2015 2.68 Aug 21, 2015 3.53 -0.17 3.50 3.55 1493 14194 FB 87.5 Aug 21, 2015 3.85 Aug 21, 2015 2.44 -0.14 2.42 2.43 2518 Aug 21, 2015 1.56 -0.16 1.57 1.58 439 18663 8698 FB FB 90 Aug 21, 2015 5.15 92.5 Aug 21, 2015 6.85 Aug 21, 2015 0.96 -0.09 0.96 0.97 431 12742 FB 95 Aug 21, 2015 8.38 Print Done Look at the Facebook option quotes in Figure 14.1 B , and focus on the call and put options with a strike price of $80. Can you use put-call parity to infer what the market price of Facebook stock must have been when these option prices were quoted? To keep things simple, assume the options expire in one month, and that the risk-free rate at the time was 0%. (Hint: To use put-call parity, you need to find the market price of a risk-free, zero-coupon bond with a face value equal the strike price of the options.) The market price is $ . (Round to the nearest cent.) 1 Data Table FIGURE 14.1 Quotations for Facebook Stock Options The quotes for calls and puts of a specified expiration period are listed down In addition to the last price the option traded at for the day and its end-of-day from the previous day's last transaction price is shown. (Source: Data from ht accessed July 6, 2015.) Option Chain Most Actives Greeks FB Options: Composite Calls & Puts Near the Money Type: Mc Jul 15| Aug 15 Sep 15 Oct 15 Nov 15 | Dec 15 Jan 16 Jan 17 Option Chain for Facebook, Inc. (FB) Calls Last Chg Bid Ask Vol Open Int Root Strike Puts Last Aug 21, 2015 8.40 -0.20 8.35 8.50 233 3142 FB 80 Aug 21, 2015 1.22 Aug 21, 2015 6.60 -0.10 6.50 6.60 109 5 118 FB 82.5 Aug 21, 2015 1.85 Aug 21, 2015 4.90 -0.20 4.90 4.95 233066167 FB 85 Aug 21, 2015 2.68 Aug 21, 2015 3.53 -0.17 3.50 3.55 1493 14194 FB 87.5 Aug 21, 2015 3.85 Aug 21, 2015 2.44 -0.14 2.42 2.43 2518 Aug 21, 2015 1.56 -0.16 1.57 1.58 439 18663 8698 FB FB 90 Aug 21, 2015 5.15 92.5 Aug 21, 2015 6.85 Aug 21, 2015 0.96 -0.09 0.96 0.97 431 12742 FB 95 Aug 21, 2015 8.38 Print Done
