A10 Option Valuation Question

A10 Option Valuation Question - 1 Base your answers on the...

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1) Base your answers on the graph and data on the next page for the listed option contracts. 1. The above graph is for what kind of option? 2. How do you determine the option Type? Consider the appropriate option with a 15 Strike price and answer the following: 3. Determine the underlying asset price for the option with value V 0 4. Curve with label 7 is for what date? 5. For this option determine ( V0 V2) and name this value 6. If possible determine (V 1 -V 2 ) for this option. 7. For this option determine (V 3 -V 4 ). 8. Determine V 2 and name this value. 9. Explain the difference between V 0 and V 3 . 10. Why is V 3 greater than V 0 ? 11. Curve with label 8 is for what date? 12. What is the underlying asset value at point 5? 13. What is the underlying asset value at point 6? V 0 0 V 4 15 1 V 1 V 3 9 4 5 6 3 2 Value Asset Price & Strike Price 7 8 V 2
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INTC (Intel)Date 1-22-2008 At 10:51AM ET: 18.42 0.58 (3.05%) Options Expiring Fri, Apr 18, 2008 INQDU.X Strike Price Puts Symbol Last Change Bid Ask Volume Open Int Symbol Last Change Bid Ask Volume Open Int NQDV.X 5.95 0.66 6.10 6.25 2 1,447 12.50 NQPV.X 0.14 0.06 0.12 0.13 315 546 NQDC.X 3.85 0.45 3.90 4.00 131 1,335 15.00 NQPC.X 0.37 0.08 0.37 0.39 530 1,716 NQDW.X 2.07 0.33 2.09 2.12 613 2,453 17.50 NQPW.X 1.05 0.20 1.02 1.04 2,048 17,620 NQDD.X 0.91 0.19 0.91 0.92 1,752 14,118 20.00 NQPD.X 2.33 0.28 2.39 2.42 451 18,891 NQDX.X 0.36 0.06 0.33 0.34 721 23,580 22.50 NQPX.X 4.25 0.40 4.30 4.40 39 26,456 INQDE.X 0.12 0.06 0.12 0.14 515 51,508 25.00 INQPE.X 6.65 0.50
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