Question

The Chicago Board Options Exchange (CBOE) is one of the world’s largest options exchanges. CBOE and other options exchanges trade contracts that give buyers and sellers the right to trade investment assets at a specific price within a specific time period.

A _________(call or put) option gives the option holder the right to buy an asset at a fixed price during a particular period. The fixed price, or the price at which the asset is bought, is called the exercise price.

The following table shows the options quotation in U.S. dollars for Parrot Transport Corp. for June 30 of this year.

Option	Closing Price	Strike Price	Calls–Last Quote September	Puts–Last Quote September
1	$45.00	$49.00	$3.00	$3.30
2	$45.00	$42.00	$4.50	$1.80
3	$45.00	$51.00	$2.40	$3.90

If you could exercise the options listed anytime on or before the expiration date (the third Friday of September), then these options would be _________(American, or European) options.

Assuming that the options listed are American options, on June 30, which of the call options for Parrot Transport Corp. listed in the table is in-the-money?

___Option 2

___Option 1

___Option 3

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

? v 1 01:45 ENG 16-02-207026 10195 - X f JM N JO JP Q R S T U V W X Y Z KA KB 182 183 185 ANS 1 CALL OPTION 187 ANS 2 AMERICAN OPTIONS 188 ANS 3 OPTION 2 CLOSING PRICE IS HIGHER THAN STRIKE PRICE 191 192 194 195 196 197 198 199 200 201 202 203 204 205 ... OCF CASH FLOW STATW FCF ARM, MSI,confidenceINDEX LOAN CURRENCY CROSS OVER GM HPRAM TAX HEDGING MONEY MARKET GROWTH SL ... :