Exam #1

d) (5 points) Name two reasons why each of the options (2 reasons for call and put) in the strangle above are so cheap on Table 3! Be very specific. 1) both are way out of money - call $8.64 out of money, put is $11.36 out of money. 2) very close to expiration, chances of getting in the money are extremely slim! ................
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