Given the following information for December 24 corn futures, identify the "In the Money", "At The Money", and "Out of the Money" 22 puts and Calls. The December 24 futures price is $4.71. Also, calculate the intrinsic and extrinsic values of the premiums. 24 Puts Calls Strike 25 Prices Premium Puts Monies Premium Calls Monies Intrinsic Extrinsic Intrinsic Extrinsic 26 5.2 0.655 Out 0.180 27 5.1 0.583 In 0.204 28 5 0.513 At 0.232 29 4.9 0.447 0.264 Out 30 4.8 0.386 0.301 31 4.7 0.33 0.342 32 4.6 0.276 0.386 33 4.5 0.227 0.436 34 4.4 0.185 0.491 35 4.3 0.147 0.551 36
Given the following information for December 24 corn futures, identify the "In the Money", "At The Money", and "Out of the Money" 22 puts and Calls. The December 24 futures price is $4.71. Also, calculate the intrinsic and extrinsic values of the premiums. 24 Puts Calls Strike 25 Prices Premium Puts Monies Premium Calls Monies Intrinsic Extrinsic Intrinsic Extrinsic 26 5.2 0.655 Out 0.180 27 5.1 0.583 In 0.204 28 5 0.513 At 0.232 29 4.9 0.447 0.264 Out 30 4.8 0.386 0.301 31 4.7 0.33 0.342 32 4.6 0.276 0.386 33 4.5 0.227 0.436 34 4.4 0.185 0.491 35 4.3 0.147 0.551 36
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Given the following information for December 24 corn futures, identify the "In the Money", "At The Money", and "Out of the Money" 22 puts and Calls. The December 24 futures price is $4.71. Also, calculate the intrinsic and extrinsic values of the premiums. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 \table[[Strike,Premium],[Prices,Puts,Monies],[5.2,0.655,Out],[5.1,0.583,In],[5,0.513,At],[4.9,0.447,Out],[4.8,0.386,],[4.7,0.33,],[4.6,0.276,],[4.5,0.227,],[4.4,0.185,],[4.3,0.147,]] \table[[Puts,,],[Intrinsic,Extrinsic,Calls],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]
Transcribed Image Text:Given the following information for December 24 corn futures, identify the "In the Money", "At The Money", and "Out of the Money"
puts and Calls. The December 24 futures price is $4.71. Also, calculate the intrinsic and extrinsic values of the premiums.
Puts
Calls
Strike
25
Prices
Premium
Puts
Monies
Premium
Calls
Monies
Intrinsic
Extrinsic
Intrinsic Extrinsic
26
5.2
0.655 Out
0.180
W
27
5.1
0.583 In
0.204
28
5
0.513 At
0.232
29
4.9
0.447
0.264
Out
30
4.8
0.386
0.301
31
4.7
0.33
0.342
32
4.6
0.276
0.386
33
4.5
0.227
0.436
34
35
4567
36
37
4.4
0.185
0.491
4.3
0.147
0.551
minus
plus
22
24
22
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