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Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $79. Calls Puts Strike Price 71
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $79. Calls Puts Strike Price 71 Option RWJ Expiration Mar Last Vol. Vol. 249 Last 5.20 5.10 179 146 Apr Jul Oct 71 189 10.95 11.80 12.70 9.95 13.70 12.35 71 71 158 79 62 30 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? 2 Mar call Apr call 2 Oct call 2 Mar put 2 Oct put 2 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.) Profit Mispriced option (Click to select) + (Click to select) +
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