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Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $68. Calls Puts Strike Option Expiration

Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $68.

Calls Puts
Strike
Option Expiration Price Vol. Last Vol. Last
RWJ Mar 63 238 4.00 168 4.10
Apr 63 178 9.85 135 8.85
Jul 63 147 10.70 51 12.05
Oct 63 68 11.60 19 11.25

a-1 Are the call options in or out of the money?
In the money
Out of the money

a-2 What is the intrinsic value of an RWJ Corp. call option?

Intrinsic value $

b-1 Are the put options in or out of the money?
In the money
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?
Mar call
Apr call
Oct call
Mar put
Oct put
Apr put

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.)

Mispriced option Profit
(Click to select)Jul callOct callApr callMar call $
(Click to select)Jul putApr putMar putOct put $

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