uppose the following is the part of the WSJ listed optionsquotations on 12/1/2018; on that day IBN stock price was $53.

Strike	Exp.	Call	Put
50	Jan	5	1.06
50	Apr	3.50	1.25
55	Jan	6	5
60	Jan	0.50	8
60	Apr	1.50	9.50
60	Jul	2.38	10.75

Which one of the following is out of the money?

		50 Jan Call
		50 Apr Call
		55 Jan Call
		60 Jan Put

What is the exercise value, or the intrinsic (=parity) value ofa Jan 50 call option?

		$1
		$2
		$3
		$4
		$5

How much time value is in Jan 50 call option?

		$1
		$2
		$3
		$4
		$5

Suppose today you buy a IBN Jan 50 call for the price listed. Atexpiration, IBN stock sells for $60. What is the profit percontract?

		$300
		$500
		$600
		$800
		$1200

Suppose you buy a IBN Apr 50 put for the price listed. Atexpiration, IBN stock sells for $45. What is your profit percontract?

		$150
		$250
		$375
		$400
		$550

Assume the call premium of $5 for IBN Jan 50 call option isright. Then the underlined price of $3.50 for Apr 50 call cannot betrue. Which one of the following is a reasonable price for theoption?

		$2.5
		$3
		$3.5
		$4.5
		$5.5

Assume the call premium of $5 for IBM Jan 50 call option isright. Then the underlined price of $6 for Jan 55 call cannot betrue. Which one of the following is a reasonable price for theoption?

		$0
		$1
		$6.5
		$7
		$7.5

ABD stock is selling for $145 and call option on ABD stock withstriking price of $140 is selling for $12.5. The option expires 5months from today. The risk-free interest rate is 8%. Based on theput-call parity for European options, calculate the value of putoption with striking price of $140 and time to expiration of 5months.

		$2.53
		$3.08
		$5.51
		$7.12
		$8.33

The current level of the S&P 500 is 1500. The dividend yieldon the S&P 500 is 2%. The risk-free interest rate is 4%. Thefutures price for a contract on the S&P 500 due to expire 6months from now should be __________.

		$1,500
		$1,515
		$1,525
		$1,535
		$1,545