Chapter 02 · Section 2.1
Xerox stock
Xerox common stock is trading at $64.00. What was the total premium received by a CBOE trader who wrote 3 July 70 Xerox puts at $7? N.B. CBOE stands for Chicago Board Option Exchange. Please enter the appropriate dollar amount.
a) +2100
b) -7
c) -21
d) -700
The contract size for a Xerox put is 100 shares. The premium is quoted on a per share basis.