Question : 11.What the time value of the December 105 put? a.1.30 b.8.30 c.0.00 d.7.00 e.none of : 1409814

 

11.What is the time value of the December 105 put?

a.1.30

b.8.30

c.0.00

d.7.00

e.none of the above

 

12.What is the time value of the November 115 put?

a.1.75

b.2.80

c.1.10

d.0.00

e.none of the above

 

13.What is the time value of the November 110 call?

a.0.00

b.4.40

c.1.15

d.3.25

e.none of the above

 

14.What is the time value of the January 115 call?

a.5.30

b.0.00

c.3.50

d.1.70

e.none of the above

 

15.What is the European lower bound of the December 105 call?

a.9.86

b.0.00

c.8.25

d.9.26

e.none of the above

 

16.What is the European lower bound of the November 115 call?

a.1.44

b.0.00

c.1.75

d.2.06

e.none of the above

 

17.From American put-call parity, what are the minimum and maximum values that the sum of the stock price and December 110 put price can be?

a.101.81 and 102.87

b.2.50 and 113.25

c.116.038 and 117.10

d.7.125 and 110

e.none of the above

 

18.The maximum difference between the January 105 and 110 calls is which of the following?

a.11.50

b.4.92

c.5.00

d.4.0

e.none of the above

 

19.Suppose you knew that the January 115 options were correctly priced but suspected that the stock was mispriced. Using put-call parity, what would you expect the stock price to be? For this problem, treat the options as if they were European.

a.113.73

b.123.23

c.121.23

d.112.77

e.none of the above

 

20.Suppose the stock is about to go ex-dividend in one day. The dividend will be $4.00. Which of the following calls will you consider for exercise?

a.November 115

b.November 110

c.December 115

d.all of the above

e.none of the above