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Consider the following option price quotes written on S&R stock CALL: PUT: Expiration Strike Bid Ask Open Interest Bid Ask Open Interest Sep 2014 1400

Consider the following option price quotes written on S&R stock

CALL:

PUT:

Expiration

Strike

Bid

Ask

Open

Interest

Bid

Ask

Open Interest

Sep 2014

1400

65.30

69.30

16,960

31.40

35.40

52,255

Sep 2014

1425

48.60

52.60

21,527

39.60

41.50

17,580

Sep 2014

1435

33.90

37.90

16,280

49.70

52.00

69,252

Current S&R stock price= 1,425. The current annual interest rate =5%

What is the notional value of the Sept 1435 call open interest?

(Hint: 1 contract = 100 shares)

  1. 23,361,800

  2. 2,336,180

  3. 2,319,900

  4. 16,280

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