Question

The following price quotations are for exchange-listed options on Primo Corporation common stock. Company Strike Expiration Call Put Primo 61.12 55 Feb 7.25 0.48 With transaction costs ignored, how much would a buyer have to pay for one call option contract. Assume each contract is for 100

Answer 1

$ 725

Explanation:

Price of call option = 7.25

buyer have to pay for one call option contract. Assume each contract is for 100 = 100 * 7.25 = $ 725