Discuss the current market prices

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Question: Assume the current market prices for UUU, WWW, XXX, YYY, and ZZZ are $27.15, $3.82, $34.32, $29.00, and $80.08 respectively. Determine whether the following options are in, at, or out of the money. Let 1 be "in", 0 be "at", and -1 be "out".

1. A put option you are holding on UUU stock has a strike price of $27.00. The put premium on the option was $0.16 per share when you bought it.

2. A call option you are holding on WWW stock has a strike price of $4.00. The call premium on the option was $0.21 per share when you bought it.

3. A call option you wrote on XXX stock has a strike price of $33.00. The call premium on the option was $0.20 when you wrote the option.

4. A put option you wrote on YYY stock has a strike price of $29.00. The put premium on the option was $0.19 when you wrote the option.

5. A put option you are holding on ZZZ stock has a strike price of $80.00. The put premium on the option was $0.16 when you bought the option.

Reference no: EM131936677

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