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Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $72. Calls Puts Strike Option Expiration

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Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $72. Calls Puts Strike Option Expiration Price RWJ Mar 65 Apr 65 Jul 65 Oct 65 Vol. 172 Vol. 242 182 151 72 Last 4.40 10.25 11.10 12.00 139 Last 4.50 9.25 12.65 11.65 55 23 a-1. Are the call options in or out of the money? O In the money Out of the money a- 2. What is the intrinsic value of an RWJ Corp. call option? Intrinsic value b. D- 1. Are the put options in or out of the money? O In the money O Out of the money b- 2. What is the intrinsic value of an RWJ Corp. put option? Intrinsic value C-1. Two of the options are clearly mispriced. Which ones? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) ? Mar call ? Apr call ? Oct call MA.. C-1. Two of the options are clearly mispriced. Which ones? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) ? Mar call Apr call ? Oct call ? Mar put ? Oct put Apr put C- What is the arbitrage profit you could make on each of the mispriced options? 2. (Round your answers to 2 decimal places, e.g., 32.16.) Mispriced or Profit

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