Look at the data in Table 23.2

a. What is the price of a call option with an exercise price of $460 and expiration in September 2010? What if expiration is in January 2012?
b. Why do you think the January 2012 calls cost more than the September 2010 calls?
c. Is the same true of put options? Why? Excecise price = $460.00

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Table 23.2 Expiration Date Exercise Price Call Price Put Price Sep-10 S 430.00 S 41.20S 11.05 22.5022.20 10.1039.36 65.9827.20 42.5041.00 28.8051.60 96.0056.10 80.0069.80 68.0084.20 460.00 490.00 430.00 460.00 490.00 430.00 460.00 490.00 Jan-11 Jan-12