Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $84.

a. Are the call options in the money? What is the intrinsic value of an RWJ Corp. call option?

b. Are the put options in the money? What is the intrinsic value of an RWJ Corp. put option?

c. Two of the options are clearly mispriced. Which ones? At a minimum, what should the mispriced options sell for? Explain how you could profit from the mispricing in each case.

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Puts Calls Vol. 230 170 139 Optlon and Strike Price 85 85 85 85 TSX Close Expiratlon Mar Apr Last 3.20 Vol. Last 3.30 8.05 10.85 RWJ 160 127 9.05 43 9.90 Jul Oct 10.80 11 10.45 60