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Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $66. Calls Puts Option and NY
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $66. |
Calls | Puts | |||||||||||||||||
Option and NY Close | Expiration | Strike Price | Vol. | Last | Vol. | Last | ||||||||||||
RWJ | ||||||||||||||||||
Mar | 60 | 236 | 3.80 | 166 | 3.90 | |||||||||||||
Apr | 60 | 176 | 9.65 | 133 | 8.65 | |||||||||||||
Jul | 60 | 145 | 10.50 | 49 | 11.75 | |||||||||||||
Oct | 60 | 66 | 11.40 | 17 | 11.05 | |||||||||||||
a-1. | Are the call options in the money? |
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a-2. | What is 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? |
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b-2. | What is the intrinsic value of an RWJ Corp. put option contract? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
c. | Two of the options are clearly mispriced. Which ones? (Select all that apply) |
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