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Use the table for the questions) below. Consider the following information on options from the CBOE for Rackspace RAX 30.09 0.48 Bid 30.07 Ask 30.09

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Use the table for the questions) below. Consider the following information on options from the CBOE for Rackspace RAX 30.09 0.48 Bid 30.07 Ask 30.09 12/3/2010 Last Sale Net Bid Ask Vol open int Calls RAX 10 Dec 29 0 1.5 1.7 0 1436 1.25 RAX 10 Dec 30 0.27 0.95 1.1 5 2245 1.05 RAX 10 Dec 31 0.15 0.55 0.7 13 485 0.6 RAX 10 Dec 32 0.45 0.3 0.4 74 RAX 11 Jan 29 0 2.25 2.5 0 872 1.7 RAX 11 Jan 30 0.02 1.75 2 30 523 1.87 RAX 11 Jan 31 0.06 1.3 1.5 3 1.41 85 RAX 11 Jan 32 0 0.95 1.1 0 117 1.2 Last Sale Puts Net Bid Ask Vol Open Int RAX 10 Dec 29 0.2 0.5 0.7 1 750 0.6 RAX 10 Dec 30 0 0.95 1.1 0 521 1.19 RAX 10 Dec 31 0 1.55 1.7 0 2.05 31 RAX 10 Dec 32 0 2.15 2.5 0 RAX 11 Jan 29 0 1.45 1.7 0 1205 1.85 RAX 11 Jan 30 0 1.95 2.2 0 150 RAX 11 Jan 31 0 2.55 2.7 0 100 RAX 11 Jan 32 3.1 3.4 Assume you want to buy five ca option contracts that with an exercise price close to being at-the-money and that expires December 2010. The current price that you would have to pay for such a contract is Select one: O A. $475 O B. $300 O C. $550 O D. $110

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