Use these option quotes to answer this question:

-You own 700 shares of ZZ Industries stock which you purchased for $38.40 a share.You would like to have the right to sell your shares for $35.00 a share.What will be the cost to obtain this right?
A) $0.40
B) $0.90
C) $7.00
D) $476.00
E) $900.00

Question

Use these option quotes to answer this question:
 
-You own 700 shares of ZZ Industries stock which you purchased for $38.40 a share.You would like to have the right to sell your shares for $35.00 a share.What will be the cost to obtain this right?
A) $0.40 
B) $0.90 
C) $7.00 
D) $476.00 
E) $900.00

Quizplus · Accepted Answer

Option premium = 700 × $0.68 = $476

Use These Option Quotes to Answer This Question