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
d) 9
• e) 6 &12
  No. Your trading volume figure is not correct, although your open interest figure is correct. There were two sales: one of 8 and another of 1. That makes a total of 9.

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