Chapter 03 · Section 3.1

Costs of Calls and puts 2

                    CALL                          PUT         
 Exercise    Mar      Jun      Sep           Mar      Jun     Sep 
 Price                                                             
 30         10.15    10.85     11.65         0.05     0.35    0.85 
 35          5.40     6.90      8.10         0.25     1.35    2.15 
 40          1.90     4.00      5.35         1.75     3.40    4.35 
 45          0.40     2.10      3.45         5.30     6.50    7.40 
 50          0.05     1.05      2.15        10.05    10.50   11.15 
                Stock price: $40    Today's date: February         

Now you would like to acquire the right to buy the underlying stock at $45 within 4 months. How much would that cost you per share?

• a) $45.00
  No. You just want to acquire the right to buy the underlying stock within 4 months at $45.00, not buy the stock itself.
  b) $40.00
  c) $2.10
  d) $6.50
  e) $0.40

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