Below is a list of quoted prices for options written on Air Canada and the...
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Below is a list of quoted prices for options written on Air Canada and the current stock price is $18.11. a) Why are the prices of put options with strike prices between $19 and $20.50 more expensive than the other put options on the list? b) If the investor sells 10 contracts of $18.50 call options, how much are the total sale proceeds (call premium)? Note that 1 option contract trades 100 shares. c) If an investor expects the stock price of Air Canada to move up as spring approaches and travel season will start, what trading strategy shall the investor pursue? Call or put? Long or short position
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