Use the option quote information shown here to answer the questions that follow. The stock...

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Accounting

Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $83.

StrikePuts

Option Expiration Strike Price Vol.(Puts) Last(Put)

RWJ Mar 80 230 1.10

Apr 82 170 2.25

Jul 86 139 2.50

a. Which options are in-the-money options? What are their intrinsic values?

b. Which options are out-of-money options? What are their intrinsic values?

c. Which option is mispriced?

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