Question: 6 Question 6: The graph below lists the quotes from CBOE on 28 July, 2020, for options on Alibaba stock expiring Sept 4. 2020. Alibaba

6 Question 6: The graph below lists the quotes from CBOE on 28 July, 2020, for options on Alibaba stock expiring Sept 4. 2020. Alibaba will not pay a dividend during this period. Show your work on whether we should early exercise the Call option with $247.500 strike price, and the Put option with $255.00. BABA (ALIBABA GROUP HOLDING LTD - ADR) Jul 28 2020 @ 13:20 ET (Delayed) BD 251.15 Ask 251.22 VOL 4,673,518 LAST 251.17 CHANGE +0.31 +0.12%) Filters by: Volume: AB Expiration Type: All Option Range Near the Money Expiration: 2:20 September View Chain Total Records: 8 Delta Gamma Net Ask Vol IV int Options Chain Calls Last Net Bid 13.79 0 14.1 128 -065 128 121 0 1165 10.52 10.55 Int 3 Bid 102 00125 10.75 1 Puts Last 112 12.44 0 0.3813 Ask Vol IV 146 0.3855 13.15 13 03831 12 0.3835 11 0.3853 1 OOO & 09/04/2020 A Strike BABA 247.500 BABA 250.000 BABA 252 500 BABA 255.000 25 0.5725 0.5405 0.5086 0.4772 114 0.0128 0.0128 0.0127 3 -0.925 +0.99 0 -0.825 12.05 132 Delta -0.4273 -0.4597 -0.4918 -0.5233 Gamma 00127 00128 0.0129 0.0128 2 0.3816 0 0.38 10 0.3825 7 128 0 149 1425 1465

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