a) Which options are (if any) are out of the money?

b) what is the intrinsic value ( exercise value) of the july 2020 call option?

c) what is the intrinsic value (Exercise value ) of the july 2020 call option ?

d) what is the intrinsic value (exercise value) of the july 2020 call option ?

e) if you purchased ten july 2020 call option contracts today for a premium of $.045 and you sold them on the expiry date, what is your total profit was trading at spot price of $24.20 at expiry?

 

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Below is information on JAL's exchange traded options: JAL's stock trades at $21.70 Option Call Call Put Put Expiry Apr 2020 Jul 2020 Jul 2020 Oct 2020 Last Price 2.90 0.45 2.25 8.10 Vol. 10 40 15 Strike 21.00 24.00 23.00 28.00 Below is information on JAL's exchange traded options: JAL's stock trades at $21.70 Option Call Call Put Put Expiry Apr 2020 Jul 2020 Jul 2020 Oct 2020 Last Price 2.90 0.45 2.25 8.10 Vol. 10 40 15 Strike 21.00 24.00 23.00 28.00

Answer rating: 100% (QA)

a Out of the money options are options that do not have intrinsic value at the current market conditions Intrinsic value for a call option occurs when ... View the full answer