Consider the following information on options from the CBOE for Rackspace: Assume you want...
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Consider the following information on options from the CBOE for Rackspace:
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:
a) $4500
b) $3900
c) $4000
d) $3500
e) $2600
RAX 30.09 +0.48 12/3/10 Calls 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 Puts 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 Bid 30.07 Ask 30.09 Last Sale 1.25 1.05 0.6 0.45 1.7 1.87 1.41 1.2 Last Sale 0.6 1.19 2.05 0 1.85 0 0 0 Net 0 0.27 0.15 0 O 0.02 0.06 0 Net -0.2 0 0 0 0 0 0 0 Bid 1.5 0.95 0.55 0.3 2.25 1.75 1.3 0.95 Bid 0.5 0.95 1.55 2.15 1.45 1.95 2.55 3.1 Ask Vol 1.7 0 1.1 5 0.7 13 0.4 0 2.5 0 2 30 1.5 3 1.1 0 Ask Vol 0.7 1 1.1 0 1.7 0 2.5 0 1.7 0 2.2 0 2.7 0 3.4 0 Open Int 1436 2245 485 74 872 523 85 117 Open Int 750 521 31 0 1205 150 100 0
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