Question: Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $66. Calls Puts Option and NY
| Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $66. |
| Calls | Puts | |||||||||||||||||
| Option and NY Close | Expiration | Strike Price | Vol. | Last | Vol. | Last | ||||||||||||
| RWJ | ||||||||||||||||||
| Mar | 60 | 236 | 3.80 | 166 | 3.90 | |||||||||||||
| Apr | 60 | 176 | 9.65 | 133 | 8.65 | |||||||||||||
| Jul | 60 | 145 | 10.50 | 49 | 11.75 | |||||||||||||
| Oct | 60 | 66 | 11.40 | 17 | 11.05 | |||||||||||||
| a-1. | Are the call options in the money? |
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| a-2. | What is the intrinsic value of an RWJ Corp. call option? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| b-1. | Are the put options in the money? |
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| b-2. | What is the intrinsic value of an RWJ Corp. put option contract? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| c. | Two of the options are clearly mispriced. Which ones? (Select all that apply) |
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