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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.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter5: Financial Options
Section: Chapter Questions
Problem 3Q
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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: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
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.
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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