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Calls Puts Option and NY Close Exercise/ Strike Expiration Vol. Last Vol. Last P

ID: 2641849 • Letter: C

Question

Calls

Puts

Option and NY Close

Exercise/

Strike

Expiration

Vol.

Last

Vol.

Last

Price

GM

5

Nov

89

1.12

41

0.15

6.8

5

Dec

85

1.15

22

0.1

6.8

8

Nov

5

1.15

41

1.1

6.8

8

Feb

60

0.45

55

1.2

Please show steps of your answers (or brief explanation) so I can understand how you arrived to the results. In Excel, please include formula and values used....Thanks very much.

Calls

Puts

Option and NY Close

Exercise/

Strike

Expiration

Vol.

Last

Vol.

Last

Price

GM

5

Nov

89

1.12

41

0.15

6.8

5

Dec

85

1.15

22

0.1

6.8

8

Nov

5

1.15

41

1.1

6.8

8

Feb

60

0.45

55

1.2

Explanation / Answer

Ans:

6.8

8

Feb

60

0.45

55

1.2

The last one is mispriced which is have price (1.2) of more than the call option (0.45).

6.8

8

Feb

60

0.45

55

1.2

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