Question: Below is a chart showing the calls and puts on Boeing Aircraft Co. (BA) which expire on June 21, 2019. The chart was compiled on
Below is a chart showing the calls and puts on Boeing Aircraft Co. (BA) which expire on June 21, 2019. The chart was compiled on May 13, 2019. In the questions that follow, use the "Last" column to answer questions which involve option pricing, assuming that Boeing closed at $340 on May 13. Screen Shot 2019-05-17 at 12.56.18 AM.png 2a. How much would an investor who wanted to buy one contract of the BA 360 put have to spend? 2b. What is the intrinsic value of the BA 370 put? What is the time value of that put?Be sure to show your calculations to receive credit. 2c. What is the intrinsic value of the BA 350 call? What is the time value of that call?Be sure to show your calculations to receive credit. 2d. Calculate the leverage ratio on the BA 345 call. 2e.Draw a thoroughly-labeled hockey stick diagram showing the profit or loss at option expiration on a long position in the BA 350 put.
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