! | r . l iT Normal TT No Spaci... Heading 1 Heading 2 Title Subtitle Sutitle Paragraph Styles Question 4 The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 18 through 25. Calls Premiums Puts Premiums Strike Nov Dec Jan Nov Dec Jan 105 8.40 10 11.50 5.30 1.30 2.00 110 4.40 7.10 8.30 0.90 2.50 3.80 115 1.50 3.90 5.30 2.80 4.80 4.80 The stock price was 113.25. 1. 2. 3. 4. 5. 6. 7. 8. What is the intrinsic value of the December 115 put? What is the intrinsic value of the November 105 put? What is the intrinsic value of the January 110 call? What is the intrinsic value of the November 115 call? What is the time value of the December 105 put? What is the time value of the November 115 put? What is the time value of the November 110 call? What is the time value of the January 115 call? Question 5 You buy 1,000 shares of Sunbeam at 11.125 and write 10 calls at a premium of 4.375 with a strike price of 7.5. The stock goes to 20 in 6 months. You receive a 8 cent dividend per share. If the calls are exercised (which is the likely assumption). what is your percentage return? W