Use these option quotes to answer this question:

-You want the right,but not the obligation,to sell 400 shares of ZZ Industries stock at a price of $32.50 a share.How much will it cost you to establish this option position?
A) $3.50
B) $4.00
C) $3.60
D) $3.78
E) $3.82

Question

Use these option quotes to answer this question:
 
-You want the right,but not the obligation,to sell 400 shares of ZZ Industries stock at a price of $32.50 a share.How much will it cost you to establish this option position?
A) $3.50 
B) $4.00 
C) $3.60 
D) $3.78 
E) $3.82

Quizplus · Accepted Answer

Option premium = 400 × $0.01 = $4.00

Use These Option Quotes to Answer This Question