1. Question 68

   1 Point

   The following data apply to the next 7 questions.

   Suppose the following is the part of the WSJ listed options quotations on 12/1/2008; on that day IBN stock price was $53.

   

   Which one of the following is out of the money?

   1. 50 Jan Call

   2. 50 Apr Call

   3. 55 Jan Call

   4. 60 Jan Put

2. Question 69

   1 Point

   What is the exercise value, or the parity value of a Jan 50 call option?

   1. $1

   2. $2

   3. $3

   4. $4

   5. $5

3. Question 70

   1 Point

   How much time value is in Jan 50 call option?

   1. $1

   2. $2

   3. $3

   4. $4

   5. $5

4. Question 71

   1 Point

   Suppose today you buy a IBN Jan 50 call for the price listed. At expiration, IBN stock sells for $60. What is the profit per contract?

   1. $300

   2. $500

   3. $600

   4. $800

   5. $1200

5. Question 72

   1 Point

   Suppose you buy a IBN Apr 50 put for the price listed. At expiration, IBN stock sells for $45. What is your profit per contract?

   1. $150

   2. $250

   3. $375

   4. $400

   5. $550

6. Question 73

   1 Point

   Assume the call premium of $5 for IBN Jan 50 call option is right. Then the underlined price of $3.50 for Apr 50 call cannot be true. Which one of the following is a reasonable price for the option?

   1. $2.5

   2. $3

   3. $3.5

   4. $4.5

   5. $5.5

7. Question 74

   1 Point

   Assume the call premium of $5 for IBM Jan 50 call option is right. Then the underlined price of $6 for Jan 55 call cannot be true. Which one of the following is a reasonable price for the option?

   1. $0

   2. $1

   3. $6.5

   4. $7

Question 68 1 Point The following data apply to the next 7 questions. Suppose the following is the part of the WSJ listed options quotations on 12/1/2008; on that day IBN stock price was $53. Strike Exp. Call Put 50 Jan 5 1.06 50 Apr 3.50 1.25 55 Jan 0 5 30 Jan 0.50 8 60 Apr 1.50 9.25 80 2.38 10.25