Question: The answer is A. Can you explain why this particular contract is in the money and the others are not, or how I can figure
The answer is A. Can you explain why this particular contract is in the money and the others are not, or how I can figure out which contract is the most valuable. Thanks
Consider the following information on options from the CBOE for Merck: MRK 41.95 +0.53 Oct 06, 2006 @ 14:40 ET (Data 20 Minutes Delayed) Bid NIA Ask N/A Size N/AxN/A Vol 6650300 Calls Last Sale Net Bid Ask Vol Open Int Puts Last Sale Net Open Bid Ask Voll Int K 319 63 09 Jan 25.00 VMK AE-E) 09 Jan 30.00 VMK AF-E) 09 Jan 35.00 VMK AG-E) 09 Jan 40.00 VMK AH-E) 09 Jan 45.00 VMK AI-E) 09 Jan 50.00 VMK AJ-E) 17.10] -0.30 17.30 17.50 21 13.40 pc 13.20 13.40 0 9.20 pc 9.60 10.00 0 6.50 +0.30 6.50 6.80) 2 4.20 pc 4.20 4/50 0 2.80 PC 2.35 4.75 0 214 09 Jan 25.00 (VMK ME-E) 417 09 Jan 30.00 (VMK MF-E) 591 09 Jan 35.00 (VMK MG-E) 8422 09 Jan 40.00 (VMK MH-E) 6123 09 Jan 45.00 (VMK MI-E) 4509 09 Jan 50.00 (VMK MJ-E) 0.80 pc 10.600.800 1.40 +0.20 1.15 1.40 25 2.35 pc 2.15 2.35 0 3.80 pc 3.70 3.90 0 6.40 pc 5.906.2010 9.30 pc 9.00 9.60 0 1173 7174 5513 982 > price to buy 10) Assume you want to buy one option contract that with an exercise price closest to being at- the-money and that expires January 2009. The current price that you would have to pay for such a contract is: A) $680 B) $380 C) $650 D) $420 Answer: A One contract=100 shares 6.808.100
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