As an analyst in an investment bank offering over-the-counter options, you are in charge of providing price
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Question:
As an analyst in an investment bank offering over-the-counter options, you are in charge of providing price quotes of various options written on the S&P 500 index. The multiplier of these options is $100 and the price is quoted in index points (1 point equals $100)
You offer a price quote of 95 for a plain vanilla call option. If your customer would like to take a short position of 10 contracts.
How many dollars does the customer need to pay or receive in this transaction?
Related Book For
Business Statistics A Decision Making Approach
ISBN: 9780133021844
9th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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