The following price quotations were taken from the Wall Street Journal. $\begin{array}{rrr}
\text { Stock Price}&\text { Strike }&\text { February }\
&\text { Price }&\
917 / 8 & 85 & 73 / 8 \
917 / 8 & 90 & 31 / 8 \
917 / 8 & 95 & 5 / 8
\end{array}$ The premium on one February 90 call contract is
A) $3.1250.
B) $318.00.
C) $312.50.
D) $58.00.

Question

Quizplus · Accepted Answer

The premium on one February 90 call contract is $31 / 8 or $3.125 per share. Since one contract typically represents 100 shares, the total premium is $3.125 * 100 = $312.50.

The Following Price Quotations Were Taken from the Wall Street