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Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $61. Calls Puts Strike Option Expiration
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $61. |
Calls | Puts | ||||||||||||||||
Strike | |||||||||||||||||
Option | Expiration | Price | Vol. | Last | Vol. | Last | |||||||||||
RWJ | Mar | 55 | 231 | 3.30 | 161 | 3.40 | |||||||||||
Apr | 55 | 171 | 9.15 | 128 | 8.15 | ||||||||||||
Jul | 55 | 140 | 10.00 | 44 | 11.00 | ||||||||||||
Oct | 55 | 61 | 10.90 | 12 | 10.55 | ||||||||||||
March call and October put are the mispriced options
c-2. | What is the arbitrage profit you could make on each of the mispriced options? (Round your answers to 2 decimal places, e.g., 32.16.) |
Again, March call and October put are the mispriced options
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