Question: Here E is an option quote on IBM from from the CElOE Web site showing options expiring in November and December 2013. a. Which option

Here E is an option quote on IBM from from theHere E is an option quote on IBM from from the
Here E is an option quote on IBM from from the CElOE Web site showing options expiring in November and December 2013. a. Which option contract had the most trades on that day? b. Which option contract is being held the most overall? c. Suppose you purchase one option with symbol lElM1816K125. Howr much will you need to pay your broker for the option (ignoring commissions)? :1. Explain why the last sale price is not always between the bid and ask prices. e. Suppose you sell one option with symbol |BM1816W125. How much will you receive for the option (ignoring commissions)? f. The calls with which strike prices are currently inthemoney? Which puts are inthemoney? Q. What is the difference between the option with symbol IBM1816K115 and the option with symbol lEtl'v11 821 L115? h. On what date does the option with symbol iBM1816W115 expire? In what range must IBM's stock price be at expiration for this option to be valuable? a. Which option contract had the most trades on that day? (Select from the dropdown menus.) Option: V V Y Data table IBM (INTL BUSINESS MACHINES) Nov 09 2018 @ 12:01 ET Bid 122.24 Last Calls Net Bid Ask Sale Vol Open Puts Int 2018 Nov 16 115.00 (IBM1816K115) 7.35 -1.21 7.20 7.40 19 72 2018 Nov 16 115.00 (IBM1816 2018 Nov 16 120.00 (IBM1816K120) 3.00 -1.20 3.00 3.15 194 605 2018 Nov 16 120.00 (IBM1816 2018 Nov 16 125.00 (IBM1816K125) 0.65 -0.49 0.68 0.72 383 2858 2018 Nov 16 125.00 (IBM1816 2018 Nov 16 130.00 (IBM1816K130) 0.08 -0.09 0.08 0.11 526 4133 2018 Nov 16 130.00 (IBM1816 2018 Dec 21 115.00 (IBM1821L115) 8.90 -1.65 8.85 9.00 8 530 2018 Dec 21 115.00 (IBM1821 2018 Dec 21 120.00 (IBM1821L120) 5.20 -0.78 5.25 5.35 77 14552 2018 Dec 21 120.00 (IBM1821 2018 Dec 21 125.00 (IBM1821L125) 2.59 -0.56 2.59 2.65 287 7850 2018 Dec 21 125.00 (IBM1821 2018 Dec 21 130.00 (IBM1821L130) 1.12 -0.24 1.11 1.18 248 4491 2018 Dec 21 130.00 (IBM182 Source: Chicaon Board Ontions Exchange at www.chne.com 1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!