FIN5DER – DERIVATIVE SECURITIES

FIN5DER – DERIVATIVE SECURITIES

Visit The Chicago Board Options Exchange (http://www.cboe.com) or Yahoo Finance (http://finance.yahoo.com) to find stock and option data for APPLE (AAPL). pick up 5 different option contracts (differences in their strike prices) listed on the exchange.

a. What are the option prices of these contracts if using at least one of the option     pricing models?
b. What are the relations between option prices and exercise prices, option                 prices and maturities of these contracts?
c. What are the movements of option prices around two specific corporate events (e.g     cash/stock dividend announcements/payments; stock splits; the other is of your     choice)?
d. Does Apple grant its stock options to its CEO and employee, please give your     comments on this issue?