Why are the prices of put options with strike prices between $19 and $20.50 more expensive...

  

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Why are the prices of put options with strike prices between $19 and $20.50 more expensive than the other put options on the list? If the investor sells 10 contracts of $18.50 call options, how much are the total sale proceeds (call premium)? Note that 1 option contract trades 100 shares. If an investor expects the stock price of Air Canada to move up as spring approaches and travel season will start, what trading strategy shall the investor pursue? Call or put? Long or short position? Last A $ Chg 2.95 2.58 2.22 1.90 1.62 1.35 1.10 0.87 0.76 Below is a list of quoted prices for options written on Air Canada and the current stock price is $18.11. 0.62 -0.45 -0.41 -0.39 666 -0.37 -0.32 -0.31 -0.30 -0.28 0.18 -0.15 A Bid A Ask ▲ Vol & Open Int 2.81 2.43 2.09 1.79 1.50 1.24 1.01 0.81 0.63 0.50 2.95 2.58 2.22 1.90 1.63 1.35 1.13 0.93 0.76 0.62 82 20 1 30 5 187 110 5 53 28 147 13 CALLS Jun 16, 2023 PUTS ▲ Imp Vol 0.4352 0.4208 0.4082 0.4008 0.3945 0.3836 0.3779 0.3715 0.3647 0.3626 A Strike 16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50 20.00 20.50 Last. A $ Chg 0.58 0.71 0.86 0.95 1.25 1.48 1.76 2.08 2.41 2.80 10.08 10.10 ↑0.12 10.04 ↑0.17 ↑0.18 ↑ 0.22 ↑ 0.27 10.30 ↑ 0.35 A Bid A Ask A Vol A Open Int 0.48 0.60 0.76 0.92 1.13 1.38 1.65 1.96 2.30 2.66 0.58 0.71 0.86 1.03 1.25 1.48 1.76 2,08 2.41 2.80 -- 3 45 91 15 70 203 534 34 144 A Imp Vol 0.4098 0.3994 0.3914 0.3792 0.3738 0.3675 0.3632 0.3622 0.3596 0.3621 Why are the prices of put options with strike prices between $19 and $20.50 more expensive than the other put options on the list? If the investor sells 10 contracts of $18.50 call options, how much are the total sale proceeds (call premium)? Note that 1 option contract trades 100 shares. If an investor expects the stock price of Air Canada to move up as spring approaches and travel season will start, what trading strategy shall the investor pursue? Call or put? Long or short position? Last A $ Chg 2.95 2.58 2.22 1.90 1.62 1.35 1.10 0.87 0.76 Below is a list of quoted prices for options written on Air Canada and the current stock price is $18.11. 0.62 -0.45 -0.41 -0.39 666 -0.37 -0.32 -0.31 -0.30 -0.28 0.18 -0.15 A Bid A Ask ▲ Vol & Open Int 2.81 2.43 2.09 1.79 1.50 1.24 1.01 0.81 0.63 0.50 2.95 2.58 2.22 1.90 1.63 1.35 1.13 0.93 0.76 0.62 82 20 1 30 5 187 110 5 53 28 147 13 CALLS Jun 16, 2023 PUTS ▲ Imp Vol 0.4352 0.4208 0.4082 0.4008 0.3945 0.3836 0.3779 0.3715 0.3647 0.3626 A Strike 16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50 20.00 20.50 Last. A $ Chg 0.58 0.71 0.86 0.95 1.25 1.48 1.76 2.08 2.41 2.80 10.08 10.10 ↑0.12 10.04 ↑0.17 ↑0.18 ↑ 0.22 ↑ 0.27 10.30 ↑ 0.35 A Bid A Ask A Vol A Open Int 0.48 0.60 0.76 0.92 1.13 1.38 1.65 1.96 2.30 2.66 0.58 0.71 0.86 1.03 1.25 1.48 1.76 2,08 2.41 2.80 -- 3 45 91 15 70 203 534 34 144 A Imp Vol 0.4098 0.3994 0.3914 0.3792 0.3738 0.3675 0.3632 0.3622 0.3596 0.3621

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The prices of put options with strike prices between 19 and 2050 are more expensive compared to the ... View the full answer