Based on the option quote, the June put should cost
I. more than $477
II. more than $665
III. more than the Mar and Jun 60 calls
IV. more than the Mar 60 call but no more than the Jun 60 call

Question

Quizplus · Accepted Answer

The June put price must be greater than the intrinsic value ($50-$45.23) * 100, which is $477. Additionally, it must be worth more than the Mar put price, so it must be more than $665 (the Mar put price). Furthermore, it must be worth more than both the March and June 60 calls, which is stated in option III. Therefore, choices I, II, and III are correct, but IV is incorrect as the June put price must be more than the Mar 60 call (which is $460) and may also be more than the Jun 60 call.

Based on the Option Quote, the June Put Should Cost