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The table below contains the option quote information for a company called RWJ Corp. The stock shares of RWJ Corp. can be bought or sold
The table below contains the option quote information for a company called RWJ Corp. The stock shares of RWJ Corp. can be bought or sold in today's market for $79. In the table below, "last" means most recently available purchase price for that option. |
Calls | Puts | |||||||||||||||||
Option and NY Close | Expiration in year 2023 | Strike Price | Vol. | Last | Vol. | Last | ||||||||||||
RWJ | ||||||||||||||||||
Mar | 71 | 249 | 5.10 | 179 | 5.20 | |||||||||||||
Apr | 71 | 189 | 10.95 | 146 | 9.95 | |||||||||||||
Jul | 71 | 158 | 11.80 | 62 | 13.70 | |||||||||||||
Oct | 71 | 79 | 12.70 | 30 | 12.35 | |||||||||||||
a-1. | Are the call options in the money or out of the money? |
multiple choice 1 In Out |
a-2. | Calculate the intrinsic value of an RWJ Corp. call option. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
b-1. | Are the put options in the money or out of the money? |
multiple choice 2 Out In |
b-2. | Calculate the intrinsic value of an RWJ Corp. put option. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
c. | In the table above, two of the options are not priced correctly, i.e., are either more expensive or cheaper than what they should sell for. Which two? (Select all that apply) |
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