Assume the current market prices for uuu www xxx yyy and


Assume the current market prices for UUU, WWW, XXX, YYY, and ZZZ are $24.15, $7.50, $33.00, $25.68, and $83.98 respectively. Determine whether the following options are in, at, or out of the money. Let 1 be "in", 0 be "at", and -1 be "out".

1. A put option you are holding on UUU stock has a strike price of $24.00. The put premium on the option was $0.16 per share when you bought it.

2. A call option you are holding on WWW stock has a strike price of $7.50. The call premium on the option was $0.21 per share when you bought it.

3. A call option you wrote on XXX stock has a strike price of $33.00. The call premium on the option was $0.18 when you wrote the option.

4. A put option you wrote on YYY stock has a strike price of $27.00. The put premium on the option was $0.12 when you wrote the option.

5. A put option you are holding on ZZZ stock has a strike price of $80.00. The put premium on the option was $0.11 when you bought the option.

George bought a European put option contract in UWY stock from Julie with a striking price of $34.68 per share. He paid $0.67 per share for this option contract. The size of the contract was 100 shares.

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Financial Management: Assume the current market prices for uuu www xxx yyy and
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