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 ...
What are the call open interest and trading volume figures for day 3?
a) 11 & 5
b) 11
c) 5
d) 13 & 7
e) 7
f) 2
There are now three option series in the game: two call series and one put series. Calls and puts are separated, but within the same type of option we must consolidate.