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PROBLEM SET 3 Question 1) are for case 1 and 2 fill in the yellow Observed in the market Facts Put option price Case 1
PROBLEM SET 3 Question 1) are for case 1 and 2 fill in the yellow Observed in the market Facts Put option price Case 1 Option price quoted in the m $ Call option price 1.50 7.00 $ stock price in market option strike price 45.00 49.00 45.00 49.00 45.00 49.00 1.50 49.00 7.00 Fundamental or Intrinsic Value Speculative or Time Value of money Option price quoted in the market Shoud you exercise the call option? Y or N Shoud you exercise the put option? Y or N Observed in the market Put option price Case 2 Option price quoted in the mi $ Call option price 18.00 1.00 $ stock price in market option strike price 63.00 53.00 63.00 53.00 63.00 53.00 18.00 53.00 1.00 Fundamental or Intrinsic Value Speculative or Time Value of money Option price quoted in the market Shoud you exercise the call option? Y or N Shoud you exercise the put option? Y or N Question 2) are for case 1 and 2 fill in If in case 2 above you purchased 20 call option contracts and sold them just before they expired for $8.00 per contract when the stock was trading for $60.00. How much was your loss or gain
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