Question

Use the option quote information shown here to answer the questions that follow. The stock is...

Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $73.

Option and Calls Puts
NY Close Expiration Strike Price Vol. Last Vol. Last
RWJ
Mar 68 243 4.50 173 4.60
Apr 68 183 10.35 140 9.35
Jul 68 152 11.20 56 12.80
Oct 68 73 12.10 24 11.75


a-1. Are the call options in or out of the money?

In

Out



a-2. What is the intrinsic value of an RWJ Corp. call option? (Do not round intermediate calculations.)

Intrinsic value           $

b-1. Are the put options in or out of the money?

In

Out



b-2. What is the intrinsic value of an RWJ Corp. put option? (Do not round intermediate calculations.)

Intrinsic value           $

c. Two of the options are clearly mispriced. Which ones? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

Mar call unchecked

Apr call unchecked

Oct call unchecked

Mar put unchecked

Oct put unchecked

Apr put unchecked

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