Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Currently, the best bid on December puts, strike price $1145, on Apple common stocks is $3.65 while the best ask is $3.80. Quotes are per

Currently, the best bid on December puts, strike price $1145, on Apple common stocks is $3.65 while the best ask is $3.80. Quotes are per share. What does the bid-ask spread cost you in total when you open a long position in 10 of these put options? The underlying asset is 100 shares per contract. (Answer is $75)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

8th Edition

0077261453, 978-0077261450

More Books

Students also viewed these Finance questions

Question

What are the big three of cash management?

Answered: 1 week ago