Is it surprising that the prices are so different

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Reference no: EM131315704

Examine the data in the table below.

The call option on Company #1 is out of the money by $1 and so is the call option on Company #2. Given that the options expire at the same time, is it surprising that their prices are so different? Why or why not?

Company	Stock Price	Expiration	Strike Price	Call Price
# 1	$ 49	August	$ 50	$ 6
# 2	19	August	20	3.75

Reference no: EM131315704

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