Calculate the intrinsic value and time value from the mid market (average of bid and ask) prices for the mber call options in Table 1.20. Do the same for the September put options in Table 1.3. Assume in ase that the current mid market stock price is $316.00.
Calculate the intrinsic value and time value from the mid market (average of bid and ask) prices for the mber call options in Table 1.20. Do the same for the September put options in Table 1.3. Assume in ase that the current mid market stock price is $316.00.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Table 1.2 Prices of call options on Apple, May 21, 2020; stock price: bid $316.23, ask $316.50 (Source: CBOE).
Strike price
June 2020
September 2020
($)
290
300
310
320
330
340
($)
290
300
310
320
330
Bid
340
29.80
21.55
14.35
8.65
4.20
1.90
Bid
3.00
4.80
7.15
11.25
17.10
24.40
Ask
June 2020
30.85
22.40
15.30
9.00
5.00
2.12
Ask
3.30
5.20
7.85
12.05
17.85
Bid
Table 1.3 Prices of put options on Apple, May 21, 2020; stock price: bid $316.23, ask $316.50 (Source: CBOE).
Strike price
September 2020
25.45
39.35
32.50
26.35
20.45
15.85
11.35
Bid
12.70
15.85
19.75
24.05
28.75
Ask
34.45
40.40
33.90
27.25
21.70
16.25
12.00
Ask
13.65
16.85
20.50
24.80
29.85
35.65
Bid
46.20
40.00
34.25
28.65
23.90
December 2020
19.50
December 2020
Bid
20.05
23.60
28.00
32.45
37.45
42.95
Ask
47.60
41.15
35.65
29.75
24.75
20.30
Ask
21.30
24.90
28.95
33.35
38.40
44.05
Transcribed Image Text:10.29. Calculate the intrinsic value and time value from the mid market (average of bid and ask) prices for the
September call options in Table 1.2. Do the same for the September put options in Table 1.3. Assume in
each case that the current mid market stock price is $316.00.
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