Listed Below Are the Option Quotes on JUP, Inc (A) Which Calls Are in the Money?
(B) Which Puts

Essay

Listed below are the option quotes on JUP, Inc., in January of this year.
$\begin{array}{llllll}\text { Options/Strike } & \text { March } & \text { June } & \text { March } & \text { June } \\\text { JUP } \quad 35 & 3\quad1 / 2 & 4 & 1 / 2 & 1\quad1 / 8 \\37 \quad 40 & 1\quad1 / 2 & 2 & 4\quad1 / 2 & 5 \\37 \quad 45 & 1 & 1\quad1 / 2 & 8\quad3 / 8 & \mathrm{~s} \\37 \quad 50 & 1 / 2 & \mathrm{r} & \mathrm{r} & \mathrm{s}\end{array}$


(a) Which calls are in the money?
(b) Which puts are in the money?
(c) Why are investors willing to pay 3 1/2 for the MARCH 35 call but only 1/2 for the March 35 put?
(d) Calculate the intrinsic value of the June 35 call.
(e) Calculate the intrinsic value of the March 40 put.