Chapter 04 · Section 4.1

Call Day 2

Here are all the transactions of day 2. (We keep the records of the first day because they still have an effect).

Day 1                        Day 2
Al  buys  5 Sep 35 calls.    Al  sells 8 Sep 35 calls.
Sam sells 2 Sep 35 calls.    Sam sells 1 Sep 35 calls.
Tim sells 3 Sep 35 calls.    Tim buys  9 Sep 35 calls.

                             ABC Stock Options
                    CALL                              PUT
               Day 1    Day 2                    Day 1    Day 2 
Open interest : 5        ...      Open interest : 0        ...
Trading volume: 5        ...      Trading volume: 0        ...

a) 14
b) 9
• c) 6 & 9
  Yes. Al and Sam are now both short, while Tim is long. As for the puts, given that no puts have been sold, their volume and open interest are still at zero. Continue
  d) 9
  e) 6 &12

(Click here for help)