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Basic Question 6 of 18
If an option is quoted at $14 per share, what must one pay for the option contract?
B. $700
C. $1,400
A. $140
B. $700
C. $1,400
User Contributed Comments 7
| User | Comment |
|---|---|
| shasha | the "rule" 100 shares per contract is for all kinds of derivatives, isn't it? |
| billou | no |
| stefdunk | an oil futures contract is a derivative, and no shares are involved whatsoever |
| anricus | Is a share option always for 100 shares? What about other key commodities? Is it necessary to know the quantity? And indexes? |
| bobert | Option contracts that are exchange traded are good for 100 shares. |
| gazza77 | Australian ETO's are 1000 shares/contract |
| ankurwa10 | this question is good for knowledge but i highly doubt if on standalone basis, it requires conceptual understanding. it is factual. |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
determine the value at expiration and profit from a long or a short position in a call or put option
contrast forward commitments with contingent claims
CFA® 2024 Level I Curriculum, Volume 5, Module 2.