Question: Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $83. Option and NY Close Expiration
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $83. Option and NY Close Expiration Strike Price Calls Puts vol. Last Vol. Last RW] March 80 230 2.80 160 .80 April 80 170 6 127 1.40 July 80 139 8.05 43 3.90 October 80 60 10.20 11 3.65 a. Are the call options in the money? What is the intrinsic value of an RWJ Corp. call option? b. Are the put options in the money? What is the intrinsic value of an RWJ Corp, put option? c. Two of the options are clearly mispriced. Which ones? At a minimum, what should the mispriced options sell for? Explain
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