QUESTION 12 Consider the prices for the September 2015 call options in the table below Identify the September call option with the highest intrinsic value and calculate its time value using its mid market (average of bid and offer) prices Assume in that the current mid market stock price is $532 27 14 63 23 58 19 00 10 90 10 18 Strike price ($) June 2015 Sept 2015 Dec 2015 Bid Offer Bid Offer Bid Offer 475 57 90 61 80 66 00 68 90 73 50 76 50 500 34 80 37 10 45 90 47 90 54 90 56 60 525 16 70 17 30 30 40 31 30 40 20 41 10 550 5 60 6 20 18 60 19 40 28 10 29 00 575 1 55 1 80 10 50 11 30 18 80 20 20

The Answer is in the image, click to view ...

Question: QUESTION 12 Consider the prices for the September 2015 call options in the table below. Identify the September call option with the highest intrinsic value

QUESTION 12

Consider the prices for the September 2015 call options in the table below.

Identify the September call option with the highest intrinsic value and calculate its time value using its mid-market (average of bid and offer) prices. Assume in that the current mid-market stock price is $532.27

14.63

23.58

19.00

10.90

10.18

Strike price ($) June 2015 Sept. 2015 Dec. 2015 Bid Offer Bid Offer Bid Offer 475 57.90 61.80 66.00 68.90 73.50 76.50 500 34.80 37.10 45.90 47.90 54.90 56.60 525 16.70 17.30 30.40 31.30 40.20 41.10 550 5.60 6.20 18.60 19.40 28.10 29.00 575 1.55 1.80 10.50 11.30 18.80 20.20

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!

Family Security is considering the introduction of a child security product consisting of tiny Global Positioning system (GPS) tracker that can be inserted in the sole of a childs shoe. The tracker...

Consider the prices for the September 2015 call options in the table below. Identify the September call option with the highest intrinsic value and calculate its time value using its mid-market...

Calculate the intrinsic value and time value from the mid-market (average of bid and offer) prices for the September 2015 call options in Table 1.2. Do the same for the September 2015 put options in...

Please I need helpwith this project. It is due friday Excel programming: option pricing with six-step binomial tree 1. This project is an individual project. You may not work with others. 2. The...

1. Considering a grain producer who uses futures contracts to sell his grain, (i) discuss why this producer would roll his hedge backward and (ii) create and explain two numerical examples to...

Calculate the intrinsic value and time value for each of the options: (These are actual prices that were traded on Nov. 15, 2021) CMEGroup Apr. - Live Cattle Futures =157.25/cwt CMEGroup Apr. 153...

When the stock price increases with all else remaining the same, which of the following is true? a.Calls increase in value while puts decrease in value 1. Puts increase in value while calls decrease...

Help with 2.2 and 2.3 - Excel or word document. Thanks Sep - Calls Last Puts Last Option and Underlying Strike Price Aug Dec Aug Sept Dec 58.51 56 2.76 0.04 0.22 1.16 58.51 56.5 0.06 0.30 58.51 57...

Sep - Calls Last Puts Last Option and Underlying Strike Price Aug Dec Aug Sept Dec 58.51 56 2.76 0.04 0.22 1.16 58.51 56.5 0.06 0.30 58.51 57 1.13 1.74 0.10 0.38 1.27 58.51 57.5 0.75 0.17 0.55 58.51...

Calculate the intrinsic value and time value for each of the options: (These are actual prices that were traded on Nov. 15, 2021) CMEGroup Apr. Live Cattle Futures = 157.25/cwt CMEGroup Apr. 153...

Calculate the intrinsic value and time value for each of the options: (These are actual prices that were traded on July 19, 2021) CMEGroup Dec. Live Cattle Futures = 131.275/cwt CMEGroup Dec 128...

Explain, discuss, and evaluate the following sentence from Platos myth of the cave: "for the prisoners, reality would consist of nothing but the shadows." write a brief essay.

Create a class called Date that includes 3 instance variablesa month (type int), a day (type int), and a year (type int). Provide a constructor that initializes the 3 instance variables and assumes...

Points on circle, lines tangent and perpendicular to line L . Can you please not use derivatives. Thank you.

Waldorf Astoria Spa & Health Club at Waldorf Astoria Chicago offers high-quality hair-styling and physical relaxation services at a reasonable price, so it always has unlimited demand. The process...

Debbie is a florist and operates a floral shop called "bloomers." Debbie is quite good at making creative centerpieces to plan on tables at wedding receptions. Knowing that Jone is always a popular...

5. (20 points) Consider the following capital budgeting problem (also called Lorie-Savage problem as being introduced by these researchers in 1955), select the subset of projects that maximizes the...

E11-6 Recording and Reporting Stockholders Equity Transactions [LO 11-2, LO 11-4] Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common...

Derrick and Ani Jones are married taxpayers, filing jointly and have a son named Jackson. They live at 474 Rustic Drive, Spokane, WA 99201. Ani works as the director of information systems at...

In the process of finding the optimum order quantity the following costs are obtained per order or per unit annually. Inspection Cost SR2 Cost of Interest SR 4 SR2 SR 10 Insurance Cost Administration...

Your job or career: Where are you working? What are you doing? What is your compensation?

1. Professor Zuboff says Edward was haunted by the sense of not knowing what he didnt know or how to learn it. Is it possible that many employees in todays labor force suffer from that same fear?...

Understand the conditions organizations can create that will help workers increase their self-esteem.

		14.63
		23.58
		19.00
		10.90
		10.18