Question: Please help solve these questions and explain answer with work. Thank you. The table below describes options prices for a stock MMM on t =

 Please help solve these questions and explain answer with work. Thank

Please help solve these questions and explain answer with work. Thank you.

The table below describes options prices for a stock MMM on t = AUG 19 2014. The strike prices, K, are in the leftmost column and there are four expiration months: Sep14, Oct14, Jan15 and Apr15. The stock price on August 19 2014 was St = 27.50/share. Note, in the table, --- means that the option does not exist. Q1. Indicate all the options in the table below that are in-the-money, out-of-the-money or at- the-money. Q2. For all the options in the table below indicate how much of the premium is intrinsic value and how much is time value. Q3. Options Expiration: The official expiration date for the options is: The SAT immediately following the third Friday of the expiration month. Indicate the official expiration dates of the options in the table. Apr15 20 .35 --- MMM; TUE August 19 2014. St = 27.50 CALLS - LAST PUTS - LAST Sep14 Oct14 Jan15 Apr15 Sep14 Oct14 | Jan15 8.50 25 3.50 3.80 --- .15 .50 27.5 1.35 .55 --- 30 1.70 2.40 2.75 32.5 .45 .75 1.30 5.85 .35 1.00 8.108.85 19.50 37.5 --- .50 11.00 11.74 4.20 8.75 35 .05 --- .24 .94 12.50

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!