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?

b) $40.00
No. $40.00 is the price of the underlying stock, not the price of the right to buy it.
c) $2.10
d) $6.50
e) $0.40

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