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Use the table for the questions below Consider the following information on options from the CBOE for Rackspace. A. $4500 B. $3500 C. $4000 D.

Use the table for the questions below

Consider the following information on options from the CBOE for Rackspace.

image text in transcribed

image text in transcribed

A.

$4500

B.

$3500

C.

$4000

D.

$2600

E.

$3900

RAX 30.09 0.48 12/3/10 Bid 30.07 Ask 30.09 Last Sale Bid Open Int RAX 10 Dec 29 RAX 10 Dec 30 RAX 10 Dec 31 RAX 10 Dec 32 RAX 11 Jan 29 RAX 11 Jan 30 RAX 11 Jan 31 RAX 11 Jan 32 1.25 1.05 0.6 0.45 1.7 1.87 1.41 1.2 1.7 1436 2245 485 74 872 523 85 0.27 0.15 0.95 0.55 0.3 2.25 1.75 1.3 0.95 0.7 0.4 2.5 13 0.02 0.06 1.5 Vol Open Int Net Bid Last Sale 0.7 0.5 0.95 1.55 2.15 1.45 1.95 2.55 -0.2 0.6 1.19 2.05 521 31 RAX 10 Dec 29 RAX 10 Dec 30 RAX 10 Dec 31 RAX 10 Dec 32 RAX 11 Jan 29 RAX 11 Jan 30 RAX 11 Jan 31 RAX 11 Jan 32 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 1.7 2.5 1.7 2.2 2.7 3.4 1205 150 100 1.85 RAX 30.09 0.48 12/3/10 Bid 30.07 Ask 30.09 Last Sale Bid Open Int RAX 10 Dec 29 RAX 10 Dec 30 RAX 10 Dec 31 RAX 10 Dec 32 RAX 11 Jan 29 RAX 11 Jan 30 RAX 11 Jan 31 RAX 11 Jan 32 1.25 1.05 0.6 0.45 1.7 1.87 1.41 1.2 1.7 1436 2245 485 74 872 523 85 0.27 0.15 0.95 0.55 0.3 2.25 1.75 1.3 0.95 0.7 0.4 2.5 13 0.02 0.06 1.5 Vol Open Int Net Bid Last Sale 0.7 0.5 0.95 1.55 2.15 1.45 1.95 2.55 -0.2 0.6 1.19 2.05 521 31 RAX 10 Dec 29 RAX 10 Dec 30 RAX 10 Dec 31 RAX 10 Dec 32 RAX 11 Jan 29 RAX 11 Jan 30 RAX 11 Jan 31 RAX 11 Jan 32 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 1.7 2.5 1.7 2.2 2.7 3.4 1205 150 100 1.85

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