QLM stock is currently selling for $28.60 a share. The December 25 call is quoted at $1.15 a share compared to $.05 a share for the December 25 put. What is the cost of two December $25 put option contracts on this stock?

Question

Quizplus · Accepted Answer

Each put option contract typically represents 100 shares. Therefore, the cost of one December $25 put option contract is $0.05 * 100 = $5.00. For two contracts, the cost is $5.00 * 2 = $10.00.

QLM Stock Is Currently Selling for $28