Question
Quotations for the M&B Corporation are listed as follows: .............................................CALL.............PUT Closing.....Strike....EXP...Premium.....Premium 50.5 ............ 52.0 ......Jul........ 0.250 ........... 1.90 50.5 ............ 52.0 ......Sep...... 0.400 ........... 2.05
Quotations for the M&B Corporation are listed as follows:
.............................................CALL.............PUT
Closing.....Strike....EXP...Premium.....Premium
50.5............52.0......Jul........0.250...........1.90
50.5............52.0......Sep......0.400...........2.05
50.5............57.0......Aug......0.500.........7.20
50.5............62.0......Oct.......0.700.........12.4
50.5............67.0......Jun.....1.00............17.6
The closing represents the closing price per share of M&B on a particular trading day.
Is the September (Sep) call option in-the-money or out-of-the-money? (answer with the word IN or the word OUT)
Is the June (Jun) put option in-the-money or out-of-the-money?(answer with the word IN or the word OUT)
How much would it cost in premiums to invest in an October (OCT) straddle on M&B? $
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