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Question 6 (1.5 mark) April 11, 2014, British Pound Option Prices (US cents per pound, 62,500 pound contracts). Strike Calls - Last Puts - Last

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Question 6 (1.5 mark) April 11, 2014, British Pound Option Prices (US cents per pound, 62,500 pound contracts). Strike Calls - Last Puts - Last Underlying price May June July May June July 168 159 168 162 1.60 1.90 0.60 0.75 168 166 0.75 1.10 1.35 0.75 0.80 0.90 168 170 0.55 0.65 0.75 0.90 1.05 1.15 168 175 0.45 1.65 From the table above, provide an example of a call option that is in-the-money "ITM). Calculate how much it will cost to buy one such contract

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