Part (1) Option Quotations for the M&B Corporation are listed in the Wall Street Journal as follows:

.............................................CALL.............PUT Closing.....Strike....EXP...Premium.....Premium 50.7............50.5......Jul........0.700...........0.100 50.7............50.5......Sep......0.950...........0.250 50.7............55.5......Aug......0.500.........5.50 50.7............60.5......Oct.......0.700.........10.7 50.7............65.5......Jun.....1.00............15.9

Closing represents the closing price per share of M&B on a particular trading day.

Is the Sep Call in-the-money or out-of-the-money? _____ (answer with the word IN or the word OUT) Is the Jun Put in-the-money or out-of-the-money? _____ (answer with the word IN or the word OUT)

Part (2) How much would it cost in premiums to invest in an October (OCT) straddle on M&B? $____

Place your answer in dollars and cents without a dollar sign.

NOTE: You must get both parts correct to receive credit.