Here is an option quote on IBM from the CBOE Web site showing options expiring in...

 
 

Transcribed Image Text:

Here is an option quote on IBM from the CBOE Web site showing options expiring in October and November 2015. a. Which option contract had the most trades on that day? b. Which c. Suppo d. Explai e. Suppo f. Which g. What h. On wh a. Which Option: b. Which Option: c. Suppo choice be Ο A. PI OB. P OC. P D. P 0000 i Data Table IBM (INTL BUSINESS MACHINES) Oct 05 2015 @ 16:39 ET Calls Last Sale Net Bid Ask Vol 15 Oct 140.00 (IBM1516J140) 15 Oct 145.00 (IBM1516J145) 15 Oct 150,00 (IBM1516J150) 15 Oct 155.00 (IBM1516J155) 15 Nov 140.00 (IBM1506K140) 15 Nov 145.00 (IBM1506K145) 15 Nov 150.00 (IBM1506K150) 15 Nov 155.00 (IBM1506K155) 9.55 4.10 9.15 9.15 9.50 35 4.95 2.86 4.80 5.20 234 1.50 1.13 1.53 1.54 786 0.23 0.19 0.18 0.19 662 6.77 0 10.45 11.05 0 5.83 1.58 6.70 6.90 94 3.86 1.84 3.65 3.85 314 1.72 0.90 1.67 1.74 135 Source: Chicago Board Options Exchange at www.cboe.com Open Int 390 1689 3380 4569 73 191 43 123 Print Puts Bid 148.72 Ask 149.04 Size 3 x 3 Last Sale Done Net Bid 15 Oct 140.00 (IBM1516V140) 0.36 -0.62 0.35 15 Oct 145.00 (BM1516V145) 0.89 -1.30 0.86 15 Oct 150.00 UBM1516V150) 2.44 -3.62 2.24 15 Oct 155.00 (IBM1516V155) 6.01 -5.99 5.60 15 Nov 140.00 (IBM1506W140) 1.76 -1.64 1.93 15 Nov 145.00 (IBM1506W145) 3.00 -2.69 3.20 15 Nov 150.00 (IBM1506W150) 8.66 0 5.40 15 Nov 155.00 (IBM1506W155) 8.30 0 7.85 Ask 149.04 4.46 Vol 4997840 Vol - 36 834 0.36 0.87 855 2.47 180 6.30 81 2.00 34 3.35 33 5.55 8.80 0 2 Open Int 3762 2395 2774 2985 54 78 11 0 X Here is an option quote on IBM from the CBOE Web site showing options expiring in October and November 2015. 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 IBM1516J150. How much will you need to pay your broker for the option (ignoring commissions)? d. Explain why the last sale price is not always between the bid and ask prices. e. Suppose you sell one option with symbol IBM1516V150. How much will you receive for the option (ignoring commissions)? f. Which call options are currently in-the-money? Which puts are in-the-money? g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? h. On what date does the option with symbol IBM1516V140 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 today? (Select from the drop-down menus.) Option: b. Which option contract is being held the most overall? (Select from the drop-down menus.) Option: c. Suppose you purchase one option with symbol IBM1516J150. How much will you need to pay your broker for the option (ignoring commissions)? (Select the best choice below.) ▼ ▼ O A. Payment = $1.54x100 = $154 OB. Payment = $1.53x100-$153 OC. Payment = $1.13×100 = $113 O D. Payment = $1.50x 100 = $150 Click to select your answer. Here is an option quote on IBM from the CBOE Web site showing options expiring in October and November 2015. 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 IBM1516J150. How much will you need to pay your broker for the option (ignoring commissions)? d. Explain why the last sale price is not always between the bid and ask prices. e. Suppose you sell one option with symbol IBM1516V150. How much will you receive for the option (ignoring commissions)? f. Which call options are currently in-the-money? Which puts are in-the-money? g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? h. On what date does the option with symbol IBM1516V140 expire? In what range must IBM's stock price be at expiration for this option to be valuable? d. Explain why the last sale price is not always between the bid and ask prices. (Select the best choice below.) OA. The last sale may have happened during the previous day, whereas bid/ask are current quotes. OB. The last sale may have happened earlier in the day, whereas bid/ask are current quotes. OC. The last sale may have happened before the bell, whereas bid/ask are current quotes. O D. The last sale may have happened on the floor of the CBOE, whereas bid/ask are current quotes. e. Suppose you sell one option with symbol IBM1516V150. How much will you receive for the option (ignoring commissions)? (Select the best choice below.) OA. Payment = $2.44 x 100 = $244 OB. Payment = $2.47 x 100 = $247 O C. Payment = $2.24 x 100 = $224 OD. Payment = $1.13x 100 = $113 f. Which call options are currently in-the-money? Which puts are in-the-money? (Select from the drop-down menus.) Puts: Calls: g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? (Select from the drop-down menus.) Identical except that the expires one month ▼than the h. On what date does the option with symbol IBM1516V140 expire? (Select from the drop-down menus.) This option expires the following the third of October 2015, or In what range must IBM's stock price be at expiration for this option to be valuable? (Select the best choice below.) OA. IBM's stock price must be greater than $140 at expiration. OB. IBM's stock price must be less than $140 at expiration. Here is an option quote on IBM from the CBOE Web site showing options expiring in October and November 2015. 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 IBM1516J150. How much will you need to pay your broker for the option (ignoring commissions)? d. Explain why the last sale price is not always between the bid and ask prices. e. Suppose you sell one option with symbol IBM1516V150. How much will you receive for the option (ignoring commissions)? f. Which call options are currently in-the-money? Which puts are in-the-money? g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? valls. h. On what date does the option with symbol IBM1516V140 expire? In what range must IBM's stock price be at expiration for this option to be valuable? *|| પ્રા. g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? (Select from the drop-down menus.) Identical except that the h. On what date does the option with symbol IBM1516V140 expire? (Select from the drop-down menus.) This option expires the following the third of October 2015, or In what range must IBM's stock price be at expiration for this option to be valuable? (Select the best choice below.) expires one month than the O A. IBM's stock price must be greater than $140 at expiration. OB. IBM's stock price must be less than $140 at expiration. OC. IBM's stock price must be less than $140 by the amount of the option premium at expiration. OD. IBM's stock price must be exactly equal to $140 at expiration. Here is an option quote on IBM from the CBOE Web site showing options expiring in October and November 2015. a. Which option contract had the most trades on that day? b. Which c. Suppo d. Explai e. Suppo f. Which g. What h. On wh a. Which Option: b. Which Option: c. Suppo choice be Ο A. PI OB. P OC. P D. P 0000 i Data Table IBM (INTL BUSINESS MACHINES) Oct 05 2015 @ 16:39 ET Calls Last Sale Net Bid Ask Vol 15 Oct 140.00 (IBM1516J140) 15 Oct 145.00 (IBM1516J145) 15 Oct 150,00 (IBM1516J150) 15 Oct 155.00 (IBM1516J155) 15 Nov 140.00 (IBM1506K140) 15 Nov 145.00 (IBM1506K145) 15 Nov 150.00 (IBM1506K150) 15 Nov 155.00 (IBM1506K155) 9.55 4.10 9.15 9.15 9.50 35 4.95 2.86 4.80 5.20 234 1.50 1.13 1.53 1.54 786 0.23 0.19 0.18 0.19 662 6.77 0 10.45 11.05 0 5.83 1.58 6.70 6.90 94 3.86 1.84 3.65 3.85 314 1.72 0.90 1.67 1.74 135 Source: Chicago Board Options Exchange at www.cboe.com Open Int 390 1689 3380 4569 73 191 43 123 Print Puts Bid 148.72 Ask 149.04 Size 3 x 3 Last Sale Done Net Bid 15 Oct 140.00 (IBM1516V140) 0.36 -0.62 0.35 15 Oct 145.00 (BM1516V145) 0.89 -1.30 0.86 15 Oct 150.00 UBM1516V150) 2.44 -3.62 2.24 15 Oct 155.00 (IBM1516V155) 6.01 -5.99 5.60 15 Nov 140.00 (IBM1506W140) 1.76 -1.64 1.93 15 Nov 145.00 (IBM1506W145) 3.00 -2.69 3.20 15 Nov 150.00 (IBM1506W150) 8.66 0 5.40 15 Nov 155.00 (IBM1506W155) 8.30 0 7.85 Ask 149.04 4.46 Vol 4997840 Vol - 36 834 0.36 0.87 855 2.47 180 6.30 81 2.00 34 3.35 33 5.55 8.80 0 2 Open Int 3762 2395 2774 2985 54 78 11 0 X Here is an option quote on IBM from the CBOE Web site showing options expiring in October and November 2015. 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 IBM1516J150. How much will you need to pay your broker for the option (ignoring commissions)? d. Explain why the last sale price is not always between the bid and ask prices. e. Suppose you sell one option with symbol IBM1516V150. How much will you receive for the option (ignoring commissions)? f. Which call options are currently in-the-money? Which puts are in-the-money? g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? h. On what date does the option with symbol IBM1516V140 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 today? (Select from the drop-down menus.) Option: b. Which option contract is being held the most overall? (Select from the drop-down menus.) Option: c. Suppose you purchase one option with symbol IBM1516J150. How much will you need to pay your broker for the option (ignoring commissions)? (Select the best choice below.) ▼ ▼ O A. Payment = $1.54x100 = $154 OB. Payment = $1.53x100-$153 OC. Payment = $1.13×100 = $113 O D. Payment = $1.50x 100 = $150 Click to select your answer. Here is an option quote on IBM from the CBOE Web site showing options expiring in October and November 2015. 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 IBM1516J150. How much will you need to pay your broker for the option (ignoring commissions)? d. Explain why the last sale price is not always between the bid and ask prices. e. Suppose you sell one option with symbol IBM1516V150. How much will you receive for the option (ignoring commissions)? f. Which call options are currently in-the-money? Which puts are in-the-money? g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? h. On what date does the option with symbol IBM1516V140 expire? In what range must IBM's stock price be at expiration for this option to be valuable? d. Explain why the last sale price is not always between the bid and ask prices. (Select the best choice below.) OA. The last sale may have happened during the previous day, whereas bid/ask are current quotes. OB. The last sale may have happened earlier in the day, whereas bid/ask are current quotes. OC. The last sale may have happened before the bell, whereas bid/ask are current quotes. O D. The last sale may have happened on the floor of the CBOE, whereas bid/ask are current quotes. e. Suppose you sell one option with symbol IBM1516V150. How much will you receive for the option (ignoring commissions)? (Select the best choice below.) OA. Payment = $2.44 x 100 = $244 OB. Payment = $2.47 x 100 = $247 O C. Payment = $2.24 x 100 = $224 OD. Payment = $1.13x 100 = $113 f. Which call options are currently in-the-money? Which puts are in-the-money? (Select from the drop-down menus.) Puts: Calls: g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? (Select from the drop-down menus.) Identical except that the expires one month ▼than the h. On what date does the option with symbol IBM1516V140 expire? (Select from the drop-down menus.) This option expires the following the third of October 2015, or In what range must IBM's stock price be at expiration for this option to be valuable? (Select the best choice below.) OA. IBM's stock price must be greater than $140 at expiration. OB. IBM's stock price must be less than $140 at expiration. Here is an option quote on IBM from the CBOE Web site showing options expiring in October and November 2015. 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 IBM1516J150. How much will you need to pay your broker for the option (ignoring commissions)? d. Explain why the last sale price is not always between the bid and ask prices. e. Suppose you sell one option with symbol IBM1516V150. How much will you receive for the option (ignoring commissions)? f. Which call options are currently in-the-money? Which puts are in-the-money? g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? valls. h. On what date does the option with symbol IBM1516V140 expire? In what range must IBM's stock price be at expiration for this option to be valuable? *|| પ્રા. g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140? (Select from the drop-down menus.) Identical except that the h. On what date does the option with symbol IBM1516V140 expire? (Select from the drop-down menus.) This option expires the following the third of October 2015, or In what range must IBM's stock price be at expiration for this option to be valuable? (Select the best choice below.) expires one month than the O A. IBM's stock price must be greater than $140 at expiration. OB. IBM's stock price must be less than $140 at expiration. OC. IBM's stock price must be less than $140 by the amount of the option premium at expiration. OD. IBM's stock price must be exactly equal to $140 at expiration.

Answer rating: 100% (QA)

Answer a The option contract with symbol IBM1516V145 had the most trades on that day b The option co... View the full answer