Chapter Options)

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Chapter Twenty Three
Options and Corporate Finance: Basic Concepts
Sixth Edition
23
Prepared by Gady Jacoby University of Manitoba

McGraw-Hill Ryerson
2005 McGraw Hill Ryerson Limited
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Chapter Outline
23.1 Options 23.2 Call Options 23.3 Put Options 23.4 Selling Options 23.5 Stock Option Quotations 23.6 Combinations of Options 23.7 Valuing Options 23.8 An Option-Pricing Formula 23.9 Stocks and Bonds as Options 23.10 Capital-Structure Policy and Options 23.11 Mergers and Options 23.12 Investment in Real Projects and Options 23.13 Summary and Conclusions
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23.1 Options
Many corporate securities are similar to the stock options that are traded on organized exchanges. Almost every issue of corporate stocks and bonds has option features. In addition, capital structure and capital budgeting decisions can be viewed in terms of options.
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23.1 Options Contracts: Preliminaries

An option gives the holder the right, but not the obligation, to buy or sell a given quantity of an asset on (or perhaps before) a given date, at prices agreed upon today. Calls versus Puts Call options gives the holder the right, but not the obligation, to buy a given quantity of some asset at some time in the future, at prices agreed upon today. When exercising a call option, you call in the asset. Put options gives the holder the right, but not the obligation, to sell a given quantity of an asset at some time in the future, at prices agreed upon today. When exercising a put, you put the asset to someone.
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23.1 Options Contracts: Preliminaries

Exercising the Option
The act of buying or selling the underlying asset through the option contract.
Strike Price or Exercise Price

Refers to the fixed price in the option contract at which the holder can buy or sell the underlying asset.
Expiry
The maturity date of the option is referred to as the expiration date, or the expiry.
European versus American options

European options can be exercised only at expiry. American options can be exercised at any time up to expiry.
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Options Contracts: Preliminaries

In-the-Money
The exercise price is less than the spot price of the underlying asset.
At-the-Money
The exercise price is equal to the spot price of the underlying asset.
Out-of-the-Money
The exercise price is more than the spot price of the underlying asset.
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Options Contracts: Preliminaries

Intrinsic Value
The difference between the exercise price of the option and the spot price of the underlying asset.
Speculative Value
The difference between the option premium and the intrinsic value of the option.
Option Premium
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Intrinsic Value
+ Speculative Value
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23.2 Call Options

Call options gives the holder the right, but not the obligation, to buy a given quantity of some asset on or before some time in the future, at prices agreed upon today. When exercising a call option, you call in the asset.
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Basic Call Option Pricing Relationships at Expiry

At expiry, an American call option is worth the same as a European option with the same characteristics. If the call is in-the-money, it is worth ST - E. If the call is out-of-the-money, it is worthless. CaT = CeT = Max[ST - E, 0] Where ST is the value of the stock at expiry (time T) E is the exercise price. CaT is the value of an American call at expiry CeT is the value of a European call at expiry
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Call Option Payoffs

60 Option payoffs ($)
40
20
20 20
40
50
60
80
100
120 Stock price ($)
40
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Exercise price = $50

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Call Option Payoffs

40
20
20 20
40
50
60
80
100
120 Stock price ($)
40
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Call Option Profits

40
Buy a call
20 10 20 10 20 40 50 60 80 100 120 Stock price ($)
40
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Exercise price = $50; option premium = $10
Sell a call
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23.3 Put Options

Put options give the holder the right, but not the obligation, to sell a given quantity of an asset on or before some time in the future, at prices agreed upon today. When exercising a put, you put the asset to someone.
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Basic Put Option Pricing Relationships at Expiry

At expiry, an American put option is worth the same as a European option with the same characteristics. If the put is in-the-money, it is worth E - ST. If the put is out-of-the-money, it is worthless. PaT = PeT = Max[E - ST, 0]
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Put Option Payoffs

60 Option payoffs ($) 50 40
20
20
40
50
60
80
100
Buy a put
Stock price ($)
20
40
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Put Option Payoffs

Option payoffs ($) 40
20
Sell a put
0 20 40 50 60 80 100 Stock price ($)
20
40 50
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Put Option Profits

40
20 10 20 40 50 60 80
Sell a put
100 Stock price ($)
10 20
Buy a put
40
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23.4 Selling Options

The seller (or writer) of an option has an obligation. The purchaser of an option has an option (right).
40 Buy a call
Option profits ($)
10
Sell a call
Sell a put 40 50 60 100 Stock price ($) Buy a put
10
Buy a call
40
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Sell a call
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23.5 Stock Option Quotations
Stk Exp P/C Vol Nortel Networks (NT) 9 Mar C 446 9 Mar P 155 8 June C 15 8 June P 35 11 Sept C 11 11 Sept P 5
Bid 0.50 0.20 1.95 0.55 1.10 2.65
Ask 0.55 0.30 2.10 0.65 1.25 2.80
Opint 9.35 2461 841 660 1310 459 279
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A recent price for the stock is $9.35
Bid 0.50 0.20 1.95 0.55 1.10 2.65
Ask 0.55 0.30 2.10 0.65 1.25 2.80
Opint 9.35 2461 841 660 1310 459 279
This option has a strike price of $8; June is the expiration month
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This makes a call option with this exercise price in-themoney by $1.35 = $9.35 $8.
Bid 0.50 0.20 1.95 0.55 1.10 2.65
Ask 0.55 0.30 2.10 0.65 1.25 2.80
Opint 9.35 2461 841 660 1310 459 279
Puts with this exercise price are out-of-the-money.

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Bid 0.50 0.20 1.95 0.55 1.10 2.65
Ask 0.55 0.30 2.10 0.65 1.25 2.80
Opint 9.35 2461 841 660 1310 459 279
On this day, 15 call options with this exercise price were traded.
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The holder of this CALL option can sell it for $1.95.
Bid 0.50 0.20 1.95 0.55 1.10 2.65
Ask 0.55 0.30 2.10 0.65 1.25 2.80
Opint 9.35 2461 841 660 1310 459 279
Since the option is on 100 shares of stock, selling this option would yield $195.
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Buying this CALL option costs $2.10.
Bid 0.50 0.20 1.95 0.55 1.10 2.65
Ask 0.55 0.30 2.10 0.65 1.25 2.80
Opint 9.35 2461 841 660 1310 459 279
Since the option is on 100 shares of stock, buying this option would cost $210.
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Bid 0.50 0.20 1.95 0.55 1.10 2.65
Ask 0.55 0.30 2.10 0.65 1.25 2.80
Opint 9.35 2461 841 660 1310 459 279
On this day, there were 660 call options with this exercise outstanding in the market.
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23.6 Combinations of Options

Puts and calls can serve as the building blocks for more complex option contracts. If you understand this, you can become a financial engineer, tailoring the risk-return profile to meet your client s needs.
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Protective Put Strategy: Buy a Put and Buy the Underlying Stock: Payoffs at Expiry
Value at expiry Protective Put payoffs
$50 Buy the stock $0 $50

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Buy a put with an exercise price of $50
Value of stock at expiry

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Protective Put Strategy Profits

Value at expiry $40 Buy the stock at $40 Protective Put strategy has downside protection and upside potential
$0 -$10 $40 $50
Buy a put with exercise price of $50 for $10 Value of stock at expiry 2005 McGraw Hill Ryerson Limited
-$40
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Covered Call Strategy

Value at expiry Buy the stock at $40
$10 $0 $40 $50 -$30 -$40

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Covered Call strategy Value of stock at expiry Sell a call with exercise price of $50 for $10
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Long Straddle: Buy a Call and a Put

Value at expiry
40 30
Buy a call with exercise price of $50 for $10
30 20
40
60
Stock price ($) 70
Buy a put with exercise price of $50 for $10
$50 A Long Straddle only makes money if the stock price moves $20 away from $50.
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Long Straddle: Buy a Call and a Put

Value at expiry
This Short Straddle only loses money if the stock price moves $20 away from $50.
20
Sell a put with exercise price of $50 for $10

30 40
$50
60
70
Stock price ($)
30 40
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Sell a call with an exercise price of $50 for $10

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Long Call Spread
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Long Call Spread

Value at expiry
Buy a call with an exercise price of $50 for $10 long call spread Value of stock at expiry
$5 $0 -$5 -$10 $50 $60 $55
Sell a call with exercise price of $55 for $5

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Call options and Slope
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Option Combo
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Put-Call Parity: p0 + S0 = c0 + E/(1+ r)T

E Portfolio value today = c0 + (1+ r)T
Option payoffs ($)
Portfolio payoff
Call
25
Bond
25
Stock price ($)
Consider the payoffs from holding a portfolio consisting of a call with a strike price of $25 and a bond with a future value of $25.
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Portfolio payoff Portfolio value today = p0 + S0
Stock
Option payoffs ($)
25
Put
25
Stock price ($)
Consider the payoffs from holding a portfolio consisting of a share of stock and a put with a $25 strike.
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Option payoffs ($) Option payoffs ($)
Portfolio value today E = c0 + (1+ r)T
Portfolio value today = p0 + S0
25
25
25
Stock price ($)
25
Stock price ($)
Since these portfolios have identical payoffs, they must have the same value today: hence Put-Call Parity: c0 + E/(1+r)T = p0 + S0
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23.7 Valuing Options

The last section concerned itself with the value of an option at expiry. This section considers the value of an option prior to the expiration date. A much more interesting question.
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American Option Value Determinants

1. 2. 3. 4. 5. Stock price Exercise price Interest rate Volatility in the stock price Expiration date Call + + + + Put + + +
The value of a call option C0 must fall within max (S0 E, 0) < C0 < S0. The precise position will depend on these factors.
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Market Value, Time Value and Intrinsic Value for an American Call
$
ST Call
25
Market Value Time value Intrinsic value
E Out-of-the-money loss In-the-money
ST
The value of a call option C0 must fall within max (S0 E, 0) < C0 < S0.
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23.8 An Option-Pricing Formula

We will start with a binomial option pricing formula to build our intuition. Then we will graduate to the normal approximation to the binomial for some realworld option valuation.
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Binomial Option Pricing Model

Suppose a stock is worth $25 today and in one period will either be worth 15% more or 15% less. S0= $25 today and in one year S1 is either $28.75 or $21.25. The risk-free rate is 5%. What is the value of an at-the-money call option?
S0
S1
$28.75
$25 $21.25
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1. A call option on this stock with exercise price of $25 will have the following payoffs. 2. We can replicate the payoffs of the call option. With a levered position in the stock.
S0
S1
$28.75
C1
$3.75
$25 $21.25
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$0
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Borrow the present value of $21.25 today and buy one share. The net payoff for this levered equity portfolio in one period is either $7.50 or $0. The levered equity portfolio has twice the option s payoff so the portfolio is worth twice the call option value.
S0
$28.75- $21.25 = $7.50
( S1 - debt ) = portfolio C1
$3.75
$25 $21.25- $21.25 =

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$0
$0
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The levered equity portfolio value today is today s value of one share less the present value of a $21.25 debt: $21.25
$25 -
(1 + rf )
$3.75
S0
$28.75- $21.25 = $7.50
$25 $21.25- $21.25 =

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$0
$0
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We can value the option today as half of the value of the levered 1 $21.25 equity portfolio: C0 = $25 -
(1 + r f )
S0
$28.75- $21.25 = $7.50
$3.75
$25 $21.25- $21.25 =

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$0
$0
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The Binomial Option Pricing Model

If the interest rate is 5%, the call is worth:
1 $21.25 1 = ($25 - 20.24 ) = $2.38 C0 = $25 2 (1.05) 2
S0
$28.75- $21.25 = $7.50
$3.75
$25 $21.25- $21.25 =

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$0
$0
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The Binomial Option Pricing Model

If the interest rate is 5%, the call is worth:
1 $21.25 1 = ($25 - 20.24 ) = $2.38 C0 = $25 2 (1.05) 2
S0
C0
$28.75- $21.25 = $7.50
$3.75
$25 $2.38 $21.25- $21.25 =

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$0
$0
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The most important lesson (so far) from the binomial option pricing model is:
the replicating portfolio intuition.

Many derivative securities can be valued by valuing portfolios of primitive securities when those portfolios have the same payoffs as the derivative securities.
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Delta and the Hedge Ratio

This practice of the construction of a riskless hedge is called delta hedging. The delta of a call option is positive. Recall from the example:
$3.75 - 0 $3.75 1 Swing of call = = = D= Swing of stock $28.75 - $21.25 $7.5 2

The delta of a put option is negative.
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Delta
Determining the Amount of Borrowing:
1 $21.25 1 = ($25 - $20.24) = $2.38 C0 = $25 2 (1.05) 2
Value of a call = Stock price Delta Amount borrowed $2.38 = $25 Amount borrowed Amount borrowed = $10.12
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The Risk-Neutral Approach to Valuation

S(U), V(U)
q
S(0), V(0)
1- q
S(D), V(D)
We could value V(0) as the value of the replicating portfolio. An equivalent method is risk-neutral valuation
q V (U ) + (1 - q ) V ( D) V (0) = (1 + rf )
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S(U), V(U)
q
S(0), V(0)
q is the risk-neutral probability of an up move.
1- q S(0) is the value of the S(D), V(D) underlying asset today. S(U) and S(D) are the values of the asset in the next period following an up move and a down move, respectively. V(U) and V(D) are the values of the asset in the next period following an up move and a down move, respectively.
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S(U), V(U) q S(0), V(0) 1- q S(D), V(D)
V (0) =
q V (U ) + (1 - q ) V ( D) (1 + rf )
The key to finding q is to note that it is already impounded into an observable security price: the value of S(0):
q S (U ) + (1 - q ) S ( D) S (0 ) = (1 + rf )
A minor bit of algebra yields: q =

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(1 + rf ) S (0) - S ( D) S (U ) - S ( D)
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Example of the Risk-Neutral Valuation of a Call:

Suppose a stock is worth $25 today and in one period will either be worth 15% more or 15% less. The risk-free rate is 5%. What is the value of an at-the-money call option? The binomial tree would look like this:
$28.75 = $25 (1.15)
$28.75,C(D)
$21.25 = $25 (1 - .15)
$25,C(0)
1- q
$21.25,C(D)
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The next step would be to compute the risk neutral probabilities
q= (1 + rf ) S (0) - S ( D) S (U ) - S ( D)
q=
(1.05) $25 - $21.25 $5 = =2 3 $28.75 - $21.25 $7.50
2/3
$28.75,C(D)
$25,C(0)
1/3
$21.25,C(D)
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After that, find the value of the call in the up state and down state.
C (U ) = $28.75 - $25
2/3
$28.75, $3.75
C ( D) = max[$25 - $28.75,0]
$25,C(0)
1/3
$21.25, $0
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Finally, find the value of the call at time 0:
q C (U ) + (1 - q) C ( D) C (0) = (1 + rf )
C (0) = 2 3 $3.75 + (1 3) $0 (1.05)
$2.50 C (0) = = $2.38 (1.05)
2/3
$28.75,$3.75
$25,$2.38 $25,C(0)
1/3
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$21.25, $0
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Risk-Neutral Valuation and the Replicating Portfolio

This risk-neutral result is consistent with valuing the call using a replicating portfolio.
2 3 $3.75 + (1 3) $0 $2.50 C0 = = = $2.38 (1.05) 1.05
1 $21.25 1 = ($25 - 20.24) = $2.38 C0 = $25 2 (1.05) 2

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The Black-Scholes Model

The Black-Scholes Model is Where C0 = the value of a European option at time t = 0 r = the risk-free interest rate.
d1 = ln( S / E ) + (r + s T
2
C0 = S N(d1 ) - Ee - rT N(d 2 )
)T
d 2 = d1 - s T
N(d) = Probability that a standardized, normally distributed, random variable will be less than or equal to d.
The Black-Scholes Model allows us to value options in the real world just as we have done in the two-state world.
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Find the value of a six-month call option on Microsoft with an exercise price of $150. The current value of a share of Microsoft is $160. The interest rate available in the U.S. is r = 5%. The option maturity is six months (half of a year). The volatility of the underlying asset is 30% per annum. Before we start, note that the intrinsic value of the option is $10 our answer must be at least that amount.
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Let s try our hand at using the model. If you have a calculator handy, follow along.
First calculate d1 and d2

ln(S / E ) + (r + .5 d1 = s T
2
)T
ln(160 / 150) + (.05 + .5(0.30) 2 ).5 d1 = = 0.5282 0.30 .5
Then,
d 2 = d1 - s T = 0.52815 - 0.30 .5 = 0.31602
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C0 = S N(d1 ) - Ee - rT N(d 2 )
d1 = 0.5282
d 2 = 0.31602
C0 = $20.92
N(d1) = N(0.52815) = 0.7013 N(d2) = N(0.31602) = 0.62401
C0 = $160 0.7013 - 150e -.05.5 0.62401
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Another Black-Scholes Example

Assume S = $50, X = $45, T = 6 months, r = 10%, and s = 28%, calculate the value of a call and a put. 0.282 0.50 ln 50 + 0.10 - 0 + 45 2 d1 = = 0.884 0.28 0.50
d 2 = 0.884 - 0.28 0.50 = 0.686

From a standard normal probability table, look up N(d1) = 0.812 and N(d2) = 0.754 (or use Excel s normsdist function)
C = 50 e -0 ( 0.5) (0.812) - 45 e -0.10( 0.50) (0.754) = $8.32 P = $8.32 - $50 + $45e -0.10( 0.50) = $1.125
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23.9 Stocks and Bonds as Options

Levered Equity is a Call Option. The underlying asset comprises the assets of the firm. The strike price is the payoff of the bond. If at the maturity of their debt, the assets of the firm are greater in value than the debt, the shareholders have an in-the-money call, they will pay the bondholders, and call in the assets of the firm. If at the maturity of the debt the shareholders have an out-of-the-money call, they will not pay the bondholders (i.e., the shareholders will declare bankruptcy), and let the call expire.
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Levered Equity is a Put Option.
The underlying asset comprise the assets of the firm. The strike price is the payoff of the bond.
If at the maturity of their debt, the assets of the firm are less in value than the debt, shareholders have an in-the-money put. They will put the firm to the bondholders. If at the maturity of the debt the shareholders have an out-of-the-money put, they will not exercise the option (i.e., NOT declare bankruptcy) and let the put expire.
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It all comes down to put-call parity.
c0 = S0 + p0
Value of a call on the firm
E (1+ r)T
Value of a risk-free bond
Value of = the firm
Value of a + put on the firm
Stockholder s position in terms of call options

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Stockholder s position in terms of put options

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23.10 Capital-Structure Policy and Options

Recall some of the agency costs of debt: they can all be seen in terms of options. For example, recall the incentive shareholders in a levered firm have to take large risks.
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Balance Sheet for a Company in Distress

Assets Cash Fixed Asset Total BV MV $200 $200 $400 $0 $600 $200 Liabilities LT bonds Equity Total BV MV $300 $200 $0 $300 $600 $200
What happens if the firm is liquidated today? The bondholders get $200; the shareholders get nothing.
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Selfish Strategy 1: Take Large Risks (Think of a Call Option)

The Gamble Win Big Lose Big Probability 10% 90% $0 Payoff $1,000
Cost of investment is $200 (all the firm s cash) Required return is 50% Expected CF from the Gamble = $1000 0.10 + $0 = $100 $100 NPV = $200 + (1.10) NPV = $133
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Selfish Stockholders Accept Negative NPV Project with Large Risks

Expected cash flow from the Gamble
To Bondholders = $300 0.10 + $0 = $30 To Stockholders = ($1000 - $300) 0.10 + $0 = $70
PV of Bonds Without the Gamble = $200 PV of Stocks Without the Gamble = $0 PV of Bonds With the Gamble = $30 / 1.5 = $20 PV of Stocks With the Gamble = $70 / 1.5 = $47
The stocks are worth more with the high risk project because the call option that the shareholders of the levered firm hold is worth more when the volatility is increased.
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23.11 Mergers and Options

This is an area rich with optionality, both in the structuring of the deals and in their execution. In the first half of 2000, General Mills was attempting to acquire the Pillsbury division of Diageo PLC. The structure of the deal was Diageo s stockholders received 141 million shares of General Mills stock (then valued at $42.55) plus contingent value rights of $4.55 per share.
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Cash payment to newly issued shares
The contingent value rights paid the difference between $42.55 and General Mills stock price in one year up to a maximum of $4.55.
$4.55 $0 $38 $42.55 Value of General Mills in 1 year
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The contingent value plan can be viewed in terms of puts: Each newly issued share of General Mills given to Diageo s shareholders came with a put option with an exercise price of $42.55. But the shareholders of Diageo sold a put with an exercise price of $38
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Cash payment to newly issued shares Own a put Strike $42.55 $42.55
$42.55 $38.00 $4.55 $0 $38 $42.55 Value of General Mills in 1 year
$38
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Sell a put Strike $38

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Value of General Mills in 1 year Value of a share plus cash payment Value of a share
$42.55
$4.55 $0 $38 $42.55

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Value of General Mills in 1 year

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23.12 Investment in Real Projects & Options

Classic NPV calculations typically ignore the flexibility that real-world firms typically have. The next chapter will take up this point.
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23.13 Summary and Conclusions

The most familiar options are puts and calls. Put options give the holder the right to sell stock at a set price for a given amount of time. Call options give the holder the right to buy stock at a set price for a given amount of time. Put-Call parity
C0 + X e
-rT
= S + P0
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23.13 Summary and Conclusions

The value of a stock option depends on six factors:
1. Current price of underlying stock. 2. Dividend yield of the underlying stock. 3. Strike price specified in the option contract. 4. Risk-free interest rate over the life of the contract. 5. Time remaining until the option contract expires. 6. Price volatility of the underlying stock.
Much of corporate financial theory can be presented in terms of options.

1. Common stock in a levered firm can be viewed as a call option on the assets of the firm. 2. Real projects often have hidden options that enhance value.
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Binomial Option Pricing Model Example

European Call Option Example
European Call Option that at t = 1 matures and has a strike price of $27 Future Call Value
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B.O.P.M Example Cont.

Replicating Portfolio for the call option involving the underlying stock and risk-free debt.
Scale down by 3/10 so as to make a replicating portfolio of the same future call value.
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B.O.P.M Example Cont.

Co = Price of this portfolio =
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B.O.P.M Example Cont

European Put Option Example
European Put Option that at t = 1 matures with a strike price of $27 Future Put Value
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Replicating Portfolio for the put involving the underlying stock and risk-free debt
Scale down by 7/10 so as to make a replicating portfolio of the same future put value.
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Po = Price of this portfolio =
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Remember
26.59 = 26.59
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B.O.P.M Example Cont/ Risk-Neutral Pricing
Risk-Neutral Pricing Example American call option with strike price $18 and r = 10% What is the price of the call?
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We know that by using Binomial Option pricing
For American call, PV of exercising at t=0 is $2 PV of not exercising is $4.45
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Is there another way of pricing this option? Fact. Option pricing depends on price of stock, not (directly) on Beta ( ), the discount factor, or probabilities of high-vslow state. Price of call option should be the same for all ( , ) combinations such that S0 is constant Idea: Assume = 0 compute compute value of call option
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Solve for S0 = (option payoff in good state) + (1- ) (option payoff in bad state)
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23-0

Chapter Twenty Three

Options and Corporate Finance: Basic Concepts

Prepared by Gady Jacoby University of Manitoba

2005 McGraw Hill Ryerson Limited

23.1 Options Contracts: Preliminaries

23.1 Options Contracts: Preliminaries

Strike Price or Exercise Price

European versus American options

Options Contracts: Preliminaries

2005 McGraw Hill Ryerson Limited

Options Contracts: Preliminaries

23.2 Call Options

2005 McGraw Hill Ryerson Limited

Basic Call Option Pricing Relationships at Expiry

2005 McGraw Hill Ryerson Limited

Call Option Payoffs

120 Stock price ($)

Exercise price = $50

Call Option Payoffs

120 Stock price ($)

Exercise price = $50

Call Option Profits

20 10 20 10 20 40 50 60 80 100 120 Stock price ($)

Exercise price = $50; option premium = $10

23.3 Put Options

2005 McGraw Hill Ryerson Limited

Basic Put Option Pricing Relationships at Expiry

2005 McGraw Hill Ryerson Limited

Put Option Payoffs

Exercise price = $50

Put Option Payoffs

Exercise price = $50

2005 McGraw Hill Ryerson Limited

Put Option Profits

Exercise price = $50; option premium = $10

23.4 Selling Options

Option profits ($)

Sell a put 40 50 60 100 Stock price ($) Buy a put

Exercise price = $50; option premium = $10

23.5 Stock Option Quotations

Bid 0.50 0.20 1.95 0.55 1.10 2.65

Ask 0.55 0.30 2.10 0.65 1.25 2.80

Opint 9.35 2461 841 660 1310 459 279

2005 McGraw Hill Ryerson Limited

23.5 Stock Option Quotations

Bid 0.50 0.20 1.95 0.55 1.10 2.65

Ask 0.55 0.30 2.10 0.65 1.25 2.80

Opint 9.35 2461 841 660 1310 459 279

23.5 Stock Option Quotations

Bid 0.50 0.20 1.95 0.55 1.10 2.65

Ask 0.55 0.30 2.10 0.65 1.25 2.80

Opint 9.35 2461 841 660 1310 459 279

Puts with this exercise price are out-of-the-money.

23.5 Stock Option Quotations

Bid 0.50 0.20 1.95 0.55 1.10 2.65

Ask 0.55 0.30 2.10 0.65 1.25 2.80

Opint 9.35 2461 841 660 1310 459 279

23.5 Stock Option Quotations

Bid 0.50 0.20 1.95 0.55 1.10 2.65

Ask 0.55 0.30 2.10 0.65 1.25 2.80

Opint 9.35 2461 841 660 1310 459 279

23.5 Stock Option Quotations