Question: 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

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

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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