Question
The date is March 23, 2021, and the last traded price on BHP shares is $45.09. A selection of American put 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 put 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.
Last Vol Series Ex Price Open Int Sale Ctrs PUT OPTIONS BHP Last Sale Price $45.09 Apr 21 44.00 1.00 45.00 1.50 Apr 21 Apr 21 Apr 21 47.00 2.00 48.00 2.50 Jun 21 44.00 0.90 Jun 21 45.00 2.50 Jun 21 47.00 4.90 Jun 21 48.00 4.70Step by Step Solution
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