FIN 330 Extra credit HW (Due: Wednesday June 7th, 11:59pm)Your name: ____________________
1. Pick one stock from Dow 30 stocks with a ticker symbol that starts with your first name initial. If
there is none, find a ticker that contains your first initial in any position. You can find the list of
the Dow stocks below:
https://www.cnbc.com/dow-30/
2. Go to https://www.nasdaq.com/market-activity/quotes/option-chain
3. Enter the ticker you chose in the space under “FIND A SYMBOL” to access its Option Chain.
4. Select the following in the drop-down menu:
Date: June 2023
Option: Composite
Calls & Puts: Calls & Puts
Moneyness: Near the Money
Type: All (Types)
Question 1: Pick three strike prices with non-missing premium data and put them in the first column of
the table below. The option premiums are listed in the “Last” column. Enter the premium of call and put
option with each strike price and the expiration date in the table below.
Stock Ticker: [Enter the ticker you chose]
Current Price: [Enter the current price of the stock; available at the top of option chain]
Date & time (approx.) you got the option chain data: [Enter date & time, e.g., 6/1, 10:30am]
Exp Date: June 9, 2023
Strike Price
(list them in
ascending order)
Call premium
Put premium
Exp Date: June 16, 2023
Call premium
Put premium
*** For the questions below, refer to the premiums for call and put options in Question 1 table.***
Question 2: For a given expiration date, how does call option premium change as the strike price
increases? Why?
Type your answer here
Question 3: For a given expiration date, how does put option premium change as the strike price
increases? Why?
Your answer here
Question 4:
For a given strike price, how does call option premium change as the time to expiration increases? Why?
Your answer here
Question 5:
For a given strike price, how does put option premium change as the time to expiration increases? Why?
Is there any factor that could drive the relationship between the two in the opposite direction?
Your answer here
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