Using the Facebook stock option quotations in Figure 14.1, find the option premium, the time value, and the stock index breakeven point for the following puts and calls.
a) August put with a strike price of 82.5
b) August call with the strike price of 85
day bid and ask price, the change of the strike price. source: Data from http://www.nasdaq.com, Composite Option Chain I Most Actives I Greeks Calls & Puts Near the Money Type: Monthly GO
Calls
Last Chg Bid Ask Vol Open Int he Root Strike Puts Last Chg Bid Ask 3142 Vol Open Int ns FB 80 Aug 21, 2015 1.22 0.03 1.21 1.22 1110 109 6230 5118 FB 82.5 Aug 21, 2015 1.85 0.04 1.84 1.85 Aug 21, 2015 4.90 -0.20 4.90 4.95 2330 365 4491 66167 FB 85 Aug 21, 2015 2.68 0.03 2.70 2.71 1212 Aug 21, 2015 3.53 -0.17 3.50 3.55 1493 54821 14194 FB 87.5 Aug 21, 2015 3.85 3.80 3.85 255 2178 Aug 21, 2015 2.44 -0.14 2.42 2.43 2518 18663 FB 90 Aug 21, 2015 5.15 -0.05 5.15 5.25 168 539 Aug 21, 2015 1.56 -0.16 1.57 1.58 439 8698 FB 92.5 Aug 21, 2015 6.85 6.80 6.90 132 326 Aug 21, 2015 0.96 -0.09 0.96 0.97 12742 FB 95 Aug 21, 2015 8.38 8.70 8.85 0 99
CEPTSIN SV
14.1 Describe call and put options. Are they issued like other corporate securities? 102