Which option contract is being held the most overall

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Reference no: EM131852899

Here is an option quote on IBM from the CBOE Web site showing options expiring in October and November 2015.

a. Which option contract had the most trades on that day?

b. Which option contract is being held the most overall?

c. Suppose you purchase one option with symbol IBM1516J150. How much will you need to pay your broker for the option (ignoring commissions)?

d. Explain why the last sale price is not always between the bid and ask prices.

e. Suppose you sell one option with symbol IBM1516V150. How much will you receive for the option (ignoring commissions)?

f. Which call options are currently in-the-money? Which puts are in-the-money?

g. What is the difference between the option with symbol IBM1516J140 and the option with symbol IBM1506K140?

h. On what date does the option with symbol IBM1516V140 expire? In what range must IBM's stock price be at expiration for this option to be valuable?

Reference no: EM131852899

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