Chapter 04 · Section 4.1

Call Day 3

On day three two additional option series are traded:

Day 1                     Day 2                      Day 3
Al buys 5 Sep35 calls     Al sells 8 Sep35 calls     Al buys 5 Sep40 calls 
Sam sells 1 Sep35 calls   Sam sells 1 Sep35 calls    Sam sells 2 Sep45 puts 
Tim sells 3 Sep35 calls   Tim buys  9 Sep35 calls    Tim sells 5 Sep40 calls
                                                     Tim buys  2 Sep45 puts
                           ABC  Stock Options
                    CALL                          PUT
               Day 2   Day 3                 Day 2   Day 3
Open interest : 6      ...    Open interest : 0       ...
Trading volume: 9      ...    Trading volume: 0       ...

a) 11 & 5
b) 11
c) 5
d) 13 & 7
e) 7
• f) 2
  No. Your open interest figure is not correct. The calls sold during the third day are from the Sep 40 series. They do not affect the open interest of the Sep 35 series. You can add up the open interest of the two series.

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