Question 68 1 Point The following data apply to the next 7 questions Suppose the following is the part of the WSJ listed options quotations on 12 1 2008 on that day IBN stock price was $53 Which one of the following is out of the money 50 Jan Call 50 Apr Call 55 Jan Call 60 Jan Put Question 69 1 Point What is the exercise value, or the parity value of a Jan 50 call option $1 $2 $3 $4 $5 Question 70 1 Point How much time value is in Jan 50 call option $1 $2 $3 $4 $5 Question 71 1 Point Suppose today you buy a IBN Jan 50 call for the price listed At expiration, IBN stock sells for $60 What is the profit per contract $300 $500 $600 $800 $1200 Question 72 1 Point Suppose you buy a IBN Apr 50 put for the price listed At expiration, IBN stock sells for $45 What is your profit per contract $150 $250 $375 $400 $550 Question 73 1 Point Assume the call premium of $5 for IBN Jan 50 call option is right Then the underlined price of $3 50 for Apr 50 call cannot be true Which one of the following is a reasonable price for the option $2 5 $3 $3 5 $4 5 $5 5 Question 74 1 Point Assume the call premium of $5 for IBM Jan 50 call option is right Then the underlined price of $6 for Jan 55 call cannot be true Which one of the following is a reasonable price for the option $0 $1 $6 5 $7 Question 68 1 Point The following data apply to the next 7 questions Suppose the following is the part of the WSJ listed options quotations on 12 1 2008 on that day IBN stock price was $53 Strike Exp Call Put 50 Jan 5 1 06 50 Apr 3 50 1 25 55 Jan 0 5 30 Jan 0 50 8 60 Apr 1 50 9 25 80 2 38 10 25

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Question: Question 68 1 Point The following data apply to the next 7 questions. Suppose the following is the part of the WSJ listed options quotations

Question 68
1 Point

The following data apply to the next 7 questions.

Suppose the following is the part of the WSJ listed options quotations on 12/1/2008; on that day IBN stock price was $53.

Which one of the following is out of the money?
1. 50 Jan Call
2. 50 Apr Call
3. 55 Jan Call
4. 60 Jan Put
Question 69
1 Point

What is the exercise value, or the parity value of a Jan 50 call option?
1. $1
2. $2
3. $3
4. $4
5. $5
Question 70
1 Point

How much time value is in Jan 50 call option?
1. $1
2. $2
3. $3
4. $4
5. $5
Question 71
1 Point

Suppose today you buy a IBN Jan 50 call for the price listed. At expiration, IBN stock sells for $60. What is the profit per contract?
1. $300
2. $500
3. $600
4. $800
5. $1200
Question 72
1 Point

Suppose you buy a IBN Apr 50 put for the price listed. At expiration, IBN stock sells for $45. What is your profit per contract?
1. $150
2. $250
3. $375
4. $400
5. $550
Question 73
1 Point

Assume the call premium of $5 for IBN Jan 50 call option is right. Then the underlined price of $3.50 for Apr 50 call cannot be true. Which one of the following is a reasonable price for the option?
1. $2.5
2. $3
3. $3.5
4. $4.5
5. $5.5
Question 74
1 Point

Assume the call premium of $5 for IBM Jan 50 call option is right. Then the underlined price of $6 for Jan 55 call cannot be true. Which one of the following is a reasonable price for the option?
1. $0
2. $1
3. $6.5
4. $7

Question 68 1 Point The following data apply to the next 7 questions. Suppose the following is the part of the WSJ listed options quotations on 12/1/2008; on that day IBN stock price was $53. Strike Exp. Call Put 50 Jan 5 1.06 50 Apr 3.50 1.25 55 Jan 0 5 30 Jan 0.50 8 60 Apr 1.50 9.25 80 2.38 10.25

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