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(30 pts) Use the American option quote information shown below to answer the following questions. The underlying stock is the same one that is currently

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(30 pts) Use the American option quote information shown below to answer the following questions. The underlying stock is the same one that is currently in November 26, 2020) selling for $77. Expiration May (of 2021) June (of 2021) August (of 2021) October (of 2021) Strike Price Calls Price Puts Price 80 3.80 2.20 80 6 3.40 80 9.05 4.80 80 8.88 4.95 (a). (10 pts) Are the call options in the money? What is the intrinsic value of a call option? (b). (10 pts) Are the put options in the money? What is the intrinsic value of a put option? (e). (10 pts) Two of the options are clearly mispriced. Which ones? At a minimum, what should be the mispriced options sell for? Explain how you could profit from the mispricing in cach case? (30 pts) Use the American option quote information shown below to answer the following questions. The underlying stock is the same one that is currently in November 26, 2020) selling for $77. Expiration May (of 2021) June (of 2021) August (of 2021) October (of 2021) Strike Price Calls Price Puts Price 80 3.80 2.20 80 6 3.40 80 9.05 4.80 80 8.88 4.95 (a). (10 pts) Are the call options in the money? What is the intrinsic value of a call option? (b). (10 pts) Are the put options in the money? What is the intrinsic value of a put option? (e). (10 pts) Two of the options are clearly mispriced. Which ones? At a minimum, what should be the mispriced options sell for? Explain how you could profit from the mispricing in cach case

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