QUESTION 4You want to sell four call option contracts on AA Industries ntock at a strike price of $32.50 a share. How muchwill you receive in option premiums if you place this order today?Use these option quotes to answer this question:ZZ Industries: Price 34.36Calla:StrikeSymbolLastChgBidAskVolОрen Int30.00 ZZBF4.3010.074.304.40623,42932.50 ZZBZ1.8710.071.821.872368,16835.00 ZZBG0.0110.050.000.01311938,017Puts:StrikeSymbolZZNFChgOpen Int7,258LastBidAskVol30.000.010.000,000.0132.50 ZZNZ0.0110.020.000.0156234,97235.00ZZNG0.6010.140.630.68263719,68601.51.0202 5702O3. 5827O4. 5720

Option premium is the amount that the call option writer gets when he sell the call option.

You want to sell four call option contracts on AA Industries stock at a strike price of $32.50 a share. How much will you receive in option premiums if you place this arder today? Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: Symbol Strike Last Chg Bid Ask Vol Open Int 30.00 ZZBF 4.30 10.07 4.30 4.40 62 3,429 32.50 ZZBZ 1.87 10.07 1.82 1.87 236 8,168 35.00 ZZBG 0.01 10.05 0.00 0.01 3119 38,017 Puts: Open Int 7,258 Strike Symbol ZZNF Last Chg Bid Ask Vol 30.00 0.01 0.00 0.00 0.01 32.50 ZZNZ 0.01 10.02 0.00 0.01 562 34,972 35.00 ZZNG 0.60 10.14 0.63 0.68 2637 19,686 01.51.02 O2 5782 O3.5827

You want to sell four call option contracts on AA Industries stock at a strike price of $32.50 a share. How much will you receive in option premiums if you place this arder today? Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: Symbol Strike Last Chg Bid Ask Vol Open Int 30.00 ZZBF 4.30 10.07 4.30 4.40 62 3,429 32.50 ZZBZ 1.87 10.07 1.82 1.87 236 8,168 35.00 ZZBG 0.01 10.05 0.00 0.01 3119 38,017 Puts: Open Int 7,258 Strike Symbol ZZNF Last Chg Bid Ask Vol 30.00 0.01 0.00 0.00 0.01 32.50 ZZNZ 0.01 10.02 0.00 0.01 562 34,972 35.00 ZZNG 0.60 10.14 0.63 0.68 2637 19,686 01.51.02 O2 5782 O3.5827

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter5: Currency Derivatives

Section: Chapter Questions

Problem 27QA

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