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Once you have collected your data, use the following table template to record call option intrinsic value and time value. Underlyings: XXX Current stock




 

Once you have collected your data, use the following table template to record call option intrinsic value and time value. Underlyings: XXX Current stock price:$$$ Strike Price Intrinsic Value Time Value K K2 : K13 Table 1: Intrinsic and Time Value of Call It might be helpful if you can visualize your data, e.g., plot these different values against strike prices. Look at these data (in either table or plot or both), describe your observa- tions and comment on any pattern or abnormal that you have identified. (Words limit: 300; 15 Marks) CODE STYLE FMGJQ9 (A) American FMGJS9 (A) American FMGKA9 (A) American FMGSE9 (A) American FMGTN9 (A) American FMGTP9 (A) American FMGTR9 (A) American FMGVD9 (A) American FMG2H7 (A) American FMG7J8 (A) American FMGBQ7 (A) American FMGC77 (A) American BID ($) 2.79 2.4 1.96 1.56 1.2 0.86 0.59 0.38 0.24 0.16 0.09 0.04 OFFER ($) 3.14 2.62 2.18 1.72 1.32 0.99 0.7 0.49 0.32 0.2 0.14 0.1 CALLS OPEN INTEREST 124 60 175 299 1,196 2,060 3,778 6,034 5,314 1,301 5,460 1,621 VOLUME 0 0 0 0 0 0 0 25 0 0 400 310 LAST STRIKE Stock Price: 20.84 TRADE ($) ($) Intrinsic 2.35 18 1.93 18.5 1.53 19 1.18 19.5 0.88 20 0.63 20.5 20.84 21 21.5 0.19 22 0.12 22.5 0.11 23 0.06 23.5 0.43 Underlaying: Fortecue Metals 0.36 2.84 2.34 1.84 1.34 0.84 0.34 0 -0.16 -0.66 -1.16 -1.66 -2.16 -2.66 Time Value -0.49 -0.41 -0.31 -0.16 0.04 0.29 0.59 1.02 1.35 1.78 2.27 2.72

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