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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 RWJ Mar 55 Apr 55 Jul 55 Oct 55 Vol. 231 171 Last 3.30 9.15 10.00 10.90 Vol. 161 128 Last 3.40 8.15 11.00 10.55 140 44 61 12 a-1. Are the call options in or out of the money? O In the money o Out of the money 9 What is the intrinsic value of an RWJ Corp. call option? * What is the intrinsic value of an RWJ Corp. call option? Intrinsic value $ 6 be Are the put options in or out of the money? In the money O Out of the money b- What is the intrinsic value of an RWJ Corp. put option? 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 O Apr call O Oct call O Mar put Oct put C-1. Two of the options are clearly mispriced. Which ones? 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 option | Profit Mar call
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