Q1 Indicate all the options in the table below that are in the money, out of the money or at the money Q2 For all the options in the table below indicate how much of the premium is intrinsic value and how much is time value Q3 Options Expiration The official expiration date for the options is The SAT immediately following the third FRI of the expiration month Indicate the official expiration dates of the options in the table Q4 Read the definition of stock splits in the textbook and study Suppose that MMM had a three for one split right now that is on AUG 19 when the prices in the table are the market prices Explain in details and show the new numbers the price changes, and the rest of the adjustments Note the adjustments are to the nearest cent Q5 On August 19 you bought the OCT, K 25, call and at the same time you bought the OCT, K 25 put You hold both options to their expiration At the options expiration which one will you exercise and what will be your profit share or loss share if MMM s price at expiration were 5 1 S 35 5 2 S 20 5 3 S 25 NOTE Your profit is defined as The per share cash flow at expiration PLUS the initial CASH FLOW per share Q6 On August 19 you sold the APR 15, K 30, call and at the same time you sold the APR 15 K 30 put Suppose that both options will not be exercised till their expiration Calculate your profit loss per share at expiration if MMM Ls price at expiration were 6 1 S 35 6 2 S 30 6 3 S 25 Q7 On august 19 you bought the APR 15 , K 30 call and simultaneously sold the APR 15 K 32 5 call The options were not exercised till their expiration Calculate your profit loss per share at expiration if MMM Ls price at expiration were $36 50 share MMM TUE August 19 2014 St 27 50 CALLS LAST PUTS LAST Sep14 Oct14Jan15Apr15Sep14Oct14Jan15 Apr15 20 25 27 5 30 32 5 35 37 5 8 50 35 3 50 3 80 15 50 1 35 55 4 20 1 70 75 35 24 2 40 2 75 45 1 30 5 85 8 10 11 0011 74 8 75 05 1 00 8 85 9 50 50 94 12 50 MMM TUE August 19 2014 St 27 50 CALLS LAST PUTS LAST Sep14 Oct14Jan15Apr15Sep14Oct14Jan15 Apr15 20 25 27 5 30 32 5 35 37 5 8 50 35 3 50 3 80 15 50 1 35 55 4 20 1 70 75 35 24 2 40 2 75 45 1 30 5 85 8 10 11 0011 74 8 75 05 1 00 8 85 9 50 50 94 12 50

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Q1   Indicate all the options in the table below that are in the money, out of  the money or at the money  Q2   For all the options in the table below indicate how much of the premium is intrinsic value and how much is time value   Q3  Options Expiration   The official expiration date for the options is  The SAT immediately following the third FRI of the expiration month  Indicate the official expiration dates of the options in the table  Q4  Read the definition of stock splits in the textbook and study Suppose that MMM had a three for one split right now that is on AUG 19 when the prices in the table are the market prices  Explain in details and show the new numbers the price changes, and the rest of the adjustments  Note  the adjustments are to the nearest cent   Q5  On August 19 you bought the OCT, K 25, call and at the same time you bought the OCT, K 25 put  You hold both options to their expiration  At the options expiration which one will you exercise and what will be your profit share or loss share if MMM s price at expiration were  5 1 S   35  5 2 S   20  5 3 S   25  NOTE  Your profit is defined as   The per share cash flow at expiration PLUS the initial CASH FLOW per share  Q6  On August 19 you sold the APR 15, K 30, call and at the same time you sold the APR 15 K 30 put  Suppose that both options will not be exercised till their expiration  Calculate your profit loss per share at expiration if MMM Ls price at expiration were  6 1 S   35  6 2 S   30  6 3 S   25  Q7  On august 19 you bought the APR 15 , K 30 call and simultaneously sold the APR 15 K 32 5 call  The options were not exercised till their expiration  Calculate your profit loss per share at expiration if MMM Ls price at expiration were $36 50 share  MMM  TUE August 19 2014  St 27 50 CALLS LAST PUTS LAST Sep14 Oct14Jan15Apr15Sep14Oct14Jan15 Apr15 20 25 27 5 30 32 5 35 37 5 8 50  35 3 50 3 80  15  50 1 35  55 4 20 1 70  75 35  24 2 40 2 75  45 1 30 5 85 8 10 11 0011 74 8 75  05 1 00 8 85 9 50  50  94 12 50 MMM  TUE August 19 2014  St 27 50 CALLS LAST PUTS LAST Sep14 Oct14Jan15Apr15Sep14Oct14Jan15 Apr15 20 25 27 5 30 32 5 35 37 5 8 50  35 3 50 3 80  15  50 1 35  55 4 20 1 70  75 35  24 2 40 2 75  45 1 30 5 85 8 10 11 0011 74 8 75  05 1 00 8 85 9 50  50  94 12 50

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Q1 . Indicate all the options in the table below that are in-the-money, out-of- the-money or at-the-money. Q2 . For all the options in the

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