Consider the following information on options from the CBOE for Rackspace. RAX 30.09 +0.48 12/3/10 B i d 30.07 Ask 30.09 Calls Last Sale Net
Consider the following information on options from the CBOE for Rackspace.
RAX 30.09 +0.48
12/3/10 Bid 30.07 Ask 30.09
Calls | Last Sale | Net | Bid | Ask | Vol | Open Int |
RAX 10 Dec 29 | 1.25 | 0 | 1.5 | 1.7 | 0 | 1436 |
RAX 10 Dec 30 | 1.05 | 0.27 | 0.95 | 1.1 | 5 | 2245 |
RAX 10 Dec 31 | 0.6 | 0.15 | 0.55 | 0.7 | 13 | 485 |
RAX 10 Dec 32 | 0.45 | 0 | 0.3 | 0.4 | 0 | 74 |
RAX 11 Jan 29 | 1.7 | 0 | 2.25 | 2.5 | 0 | 872 |
RAX 11 Jan 30 | 1.87 | 0.02 | 1.75 | 2 | 30 | 523 |
RAX 11 Jan 31 | 1.41 | 0.06 | 1.3 | 1.5 | 3 | 85 |
RAX 11 Jan 32 | 1.2 | 0 | 0.95 | 1.1 | 0 | 117 |
Puts | Last Sale | Net | Bid | Ask | Vol | Open Int |
RAX 10 Dec 29 | 0.6 | minus?0.2 | 0.5 | 0.7 | 1 | 750 |
RAX 10 Dec 30 | 1.19 | 0 | 0.95 | 1.1 | 0 | 521 |
RAX 10 Dec 31 | 2.05 | 0 | 1.55 | 1.7 | 0 | 31 |
RAX 10 Dec 32 | 0 | 0 | 2.15 | 2.5 | 0 | 0 |
RAX 11 Jan 29 | 1.85 | 0 | 1.45 | 1.7 | 0 | 1205 |
RAX 11 Jan 30 | 0 | 0 | 1.95 | 2.2 | 0 | 150 |
RAX 11 Jan 31 | 0 | 0 | 2.55 | 2.7 | 0 | 100 |
RAX 11 Jan 32 | 0 | 0 | 3.1 | 3.4 | 0 | 0 |
Assume you want to sell 20 call option contracts with an exercise price closest to being at the money and that expires January 2011. The current price that you would receive for such a contract? is:
A. $4000
B. $2600
C.$3900
D.$3500
E.$4500
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
The option considered to sell is call option Generally the contract size is 100 Investor want...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
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