Question
The date is March 23, 2021, and the last traded price on BHP shares is $45.09. A selection of American call option prices for BHP
The date is March 23, 2021, and the last traded price on BHP shares is $45.09.
A selection of American call option prices for BHP are shown above. There are a few things about these option prices that do not make sense. Identify which prices appear to be wrong and briefly explain why. You will get full marks for this question only if you provide an explanation.
You should find at least two things wrong. No calculations are necessary your intuition should suffice.
Vol Series Ex Price Last Sale Open Int Ctrs CALL OPTIONS BHP Last Sale Price $45.09 Apr 21 44.00 0.95 Apr 21 45.00 0.80 Apr 21 48.00 0.58 Jun 21 44.00 3.40 Jun 21 45.00 3.50 Jun 21 48.00 0.50Step by Step Solution
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The Little Book Of Common Sense Investing The Only Way To Guarantee Your Fair Share Of Stock Market Returns
Authors: John C. Bogle
1st Edition
1119404509, 978-1119404507
