Say that on a recent day, Wal-Mart stock closed at $55.19 per share, down $.05 on the day. Consider the following chart giving the premium as of close of trading on that day, on various options on Wal-Mart stock:PS4_Q1_Chart.pdf

In the questions that follow, use the ?Last Sale? column to answer questions which involve option pricing.

1) What was the premium on the Sept. ?16 WMT 47.50 call, i.e., the Wal Mart call which expires in Sept. ?16 and has a strike price of $47.50?

2)How much would an investor who wanted to buy 1 contract of this option have had to spend?

WMT (WAL MART STORES INC) 55.19 -0.05 Calls Last Sale 16 Aug 42.50 (WMT LV-E) 12.30 0.0 12.65 13.05 0 0.02 0.0 0.0 0.02 16 Aug 45.00 (WMT LI-E) 10.15 0.0 10.15 10.60 0 224 16 Aug 45.00 (WMT XI-E) 0.02 0.0 0.0 0.02 45 14141 16 Aug 47.50 (WMT LW-E) 7.56 0.0 7.70 8.10 0 611 16 Aug 47.50 (WMT XW-E) 0.01 -0.03 0.0 0.03 42 16007 16 Aug 50.00 (WMT LJ-E) 5.80 0.0 5.25 5.35 290 5611 16 Aug 50.00 (WMT XJ-E) 0.02 -0.02 0.02 0.03 112 66726 16 Aug 52.50 (WMT LX-E) 3.33 -0.02 2.83 2.89 182 15093 16 Aug 52.50 (WMT XX-E) 0.08 -0.07 0.08 0.11 386 20154 16 Aug 55.00 (WMT LK-E) 0.92 -0.32 0.85 0.89 1672 34325 16 Aug 55.00 (WMT XK-E) 0.59 -0.01 0.58 0.62 2663 27823 16 Aug 57.50 (WMT LY-E) 0.20 -0.08 0.12 0.14 2220 20681 16 Aug 57.50 (WMT XY-E) 1.85 -0.41 2.33 2.38 365 10451 16 Aug 60.00 (WMT LL-E) 0.03 -0.01 0.01 0.04 114 35895 16 Aug 60.00 (WMT XL-E) 4.70 -0.15 4.70 4.80 30 6125 16 Aug 62.50 (WMT LA-E) 0.01 0.0 0.0 0.03 0 20656 16 Aug 62.50 (WMT XA-E) 7.55 0.0 7.05 7.35 0 4134 16 Aug 65.00 (WMT LM-E) 0.02 0.0 0.0 0.02 0 19428 16 Aug 65.00 (WMT XM-E) 10.43 0.0 9.40 9.85 0 2743 16 Aug 67.50 (WMT LR-E) 0.01 0.0 0.0 0.02 0 4278 16 Aug 67.50 (WMT XR-E) 10.60 0.0 11.90 12.40 0 763 16 Aug 70.00 (WMT LN-E) 0.02 0.0 0.0 0.02 0 4431 16 Aug 70.00 (WMT XN-E) 13.40 0.0 14.40 14.85 0 510 16 Aug 75.00 (WMT LO-E) 0.01 0.0 0.0 0.01 0 1057 16 Aug 75.00 (WMT XO-E) 19.50 +0.25 19.40 19.95 10 20 0.27 -0.11 0.28 0.30 219 3497 16 Sept 42.50 (WMT AV-E) 12.82 16 Sept 45.00 (WMT AI-E) Net Bid Ask 0.0 13.00 13.15 10.75 +0.45 10.65 10.80 16 Sept 47.50 (WMT AW-E) 8.82 +1.02 8.40 8.55 Vol 0 Open Puts Int 28 16 Aug 42.50 (WMT XV-E) 215 16 Sept 42.50 (WMT MV-E) 55 41905 16 Sept 45.00 (WMT MI-E) Last Sale Net Bid Ask Vol 0 Open Int 3194 0.48 -0.01 0.42 0.45 140 68355 1 4946 16 Sept 47.50 (WMT MW-E) 0.61 -0.09 0.67 0.70 179 31750 16 Sept 50.00 (WMT AJ-E) 6.60 -0.20 6.30 6.40 44 68621 16 Sept 50.00 (WMT MJ-E) 16 Sept 52.50 (WMT AX-E) 4.80 -0.15 4.45 4.55 121 3230 16 Sept 52.50 (WMT MX-E) 1.53 -0.18 1.67 1.72 16 Sept 55.00 (WMT AK-E) 2.96 -0.34 2.88 2.94 535 49005 16 Sept 55.00 (WMT MK-E) 2.51 -0.06 2.60 2.65 306 49303 16 Sept 57.50 (WMT AY-E) 1.84 -0.12 1.68 1.73 192 4390 16 Sept 57.50 (WMT MY-E) 3.85 -0.05 3.85 4.00 16 Sept 60.00 (WMT AL-E) 0.96 -0.04 0.88 0.92 495 67068 16 Sept 60.00 (WMT ML-E) 5.90 16 Sept 62.50 (WMT AA-E) 0.44 -0.07 0.40 0.44 432 3725 16 Sept 62.50 (WMT MA-E) 7.60 -1.35 7.60 7.70 16 Sept 65.00 (WMT AM-E) 0.18 -0.03 0.18 0.21 9.30 -1.33 9.85 10.00 16 Sept 70.00 (WMT AN-E) 0.04 -0.01 0.03 0.06 150 44079 16 Sept 70.00 (WMT MN-E) 15.75 0.0 14.70 14.85 0 1319 16 Sept 75.00 (WMT AO-E) 0.01 -0.02 0.01 0.03 0.0 19.35 19.95 0 259 64 82933 16 Sept 65.00 (WMT MM-E) 1.05 -0.04 1.06 1.09 210 119331 10 3546 16 Sept 75.00 (WMT MO-E) 20.50 0.0 5.55 5.70 78 80 3527 1174 0 67158 10 244 5 17887