Please solve by hand and not on the computer. Thanks.

Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $85 Calls Last 2.80 6.00 8.50 10.20 160 127 1.40 3.90 3.65 170 a. Are the call options in the money? What is the intrinsic value of an RWI Corp. call option? b. Are the put options in the money? What is the intrinsic value of an RWJ Corp. put option? what should the mispriced options sell for? Explain how you could profit from the mispricing in each case. $1,000 5% of same quality value of the common stock into which it can be converted? b. What accounts for the premium of the market price of a convertible bond over the total market 6. A put that expires in six months with an exercise price of $45 sells for $2.34. The stock is currently priced at $48, and the risk-free rate is 3.5 percent per year What is the price of a call option with the same exercise price? 2 9