The following table shows the options quotation in U.S. dollars for Big Walnut Nut Company for June 30 of this year. Option Closing Price Strike Price Calls–Last Quote September Puts–Last Quote September 1 $43.00 $47.00 $2.00 $2.20 2 $43.00 $41.00 $3.00 $1.20 3 $43.00 $49.00 $1.60 $2.60 If you could exercise the options listed only on the expiration date (the third Friday of September), then these options would be ____ options. Assuming that the options listed are American options, on June 30, which of the call options for Big Walnut Nut Company listed in the table is in-the-money? Option 2 Option 1 Option 3
The following table shows the options quotation in U.S. dollars for Big Walnut Nut Company for June 30 of this year. Option Closing Price Strike Price Calls–Last Quote September Puts–Last Quote September 1 $43.00 $47.00 $2.00 $2.20 2 $43.00 $41.00 $3.00 $1.20 3 $43.00 $49.00 $1.60 $2.60 If you could exercise the options listed only on the expiration date (the third Friday of September), then these options would be ____ options. Assuming that the options listed are American options, on June 30, which of the call options for Big Walnut Nut Company listed in the table is in-the-money? Option 2 Option 1 Option 3
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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The following table shows the options quotation in U.S. dollars for Big Walnut Nut Company for June 30 of this year.
|
Option
|
Closing Price
|
Strike Price
|
Calls–Last Quote September
|
Puts–Last Quote September
|
|---|---|---|---|---|
| 1 | $43.00 | $47.00 | $2.00 | $2.20 |
| 2 | $43.00 | $41.00 | $3.00 | $1.20 |
| 3 | $43.00 | $49.00 | $1.60 | $2.60 |
If you could exercise the options listed only on the expiration date (the third Friday of September), then these options would be ____ options.
Assuming that the options listed are American options, on June 30, which of the call options for Big Walnut Nut Company listed in the table is in-the-money?
Option 2
Option 1
Option 3
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