Understanding Option Quotes Use the option quote information shown here to answer questions Q a) & Q b) that follow. The stock is currently selling for $22.

			Calls			Puts
Option and TSX Close	Expiration	Strike Price	Vol.	Last		Vol.	Last
RWJ
	March	19	205	2.80		135	0.80
	April	19	145	6.00		111	1.20
	July	19	121	8.10		34	4.10
	October	19	62	10.10		13	3.75

Q a)Two of the options are clearly mispriced. Which ones?

1. July call and October put

2. April call and July put

3. March call and October put

4. April call and October put

5. March call and October put

6. March call and July put

Q b) At a minimum, what should the mispriced PUT option sell for?

Ans: