Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are thinking of buying a contract of a call option of Facebook (FB) with a strike price of $347.50 that expires on November 26.
You are thinking of buying a contract of a call option of Facebook (FB) with a strike price of $347.50 that expires on November 26. 2021. How much would you pay to buy this contract based on the table below which lists the details of different call and put options of FB. Calls Fri Nov 26 2021 ^ Puts Last Net Bid Ask Vol IV Delta Gamma Int Strike Last Net Bid Ask Vol IV Delta Gamma Int 9.25 -4.7 9.35 9.45 263 0.29 0.63 0.02 1080 FB 337.500 4.25 +0.9 4.25 4.35 174 0.29 -0.37 0.02 462 8 -4.175 7.9 8.05 762 0.29 0.57 0.02 2365 FB 340.000 5.3 +1.175 5.35 5.4 573 0.29 -0.43 0.02 853 6.75 -3.9 6.65 6.75 1,148 0.29 0.51 0.02 505 FB 342.500 6.39 +1.34 6.55 6.65 410 0.29 -0.49 0.02 157 5.7 -3.5 5.55 5.65 3,050 0.3 0.45 0.02 1857 FB 345.000 7.85 +1.75 7.95 00 8.1 398 0.29 -0.55 0.02 462 4.8 -3.1 4.65 4.75 647 0.3 0.4 0.02 486 FB 347.500 8.8 +1.475 9.5 9.65 115 0.3 -0.6 0.02 291 3.9 -2.875 3.85 3.95 3,571 0.3 0.34 0.02 3765 FB 350.000 11.75 +3.05 11.15 11.35 159 0.3 -0.66 0.02 804 $950 $465 $965 0 $475
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started