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Use the option quote information shown here to answer thequestions that follow. The stock is currently selling for $85. Calls PutsOption Expiration StrikePrice Volume Last Volume LastRWJ March 80 230 2.80 160 0.80 April 80 170 6.00 127 1.40 July 80 139 8.50 43 3.90 October 80 60 10.20 11 3.65A) Are the call options in the money? What is the intrinsicvalue of an RWJ Corporation call option?B) Are the put options in the money? What is the intrinsic valueof an RWJ Corporation put option?C) Two of the options are clearly mispriced. Which ones? At aminimum, what should the mispriced options sell for? Explain howyou could profit from the mispricing in each case.
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