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: (10 pts) Use the American option quote information shown below to answer the fol- lowing questions. The underlying stock is the same one that

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: (10 pts) Use the American option quote information shown below to answer the fol- lowing questions. The underlying stock is the same one that is currently in April) selling for $83. The continuous interest rate is a positive constant r. Expiration Strike Price Calls Price May 80 3.80 June 79 6.55 June 80 6.15 August 80 8.05 October 80 7.20 (7a). (4 pts) Are the call options in the money? What is the intrinsic value of a call option? (7b). (6 pts) One of the options is clearly priced mistakenly. Which one ? At a min- imum, what should the mispriced option be sold for? Explain how you could profit from the mispriced option

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