What is the current price per underlying share if you wish to buy a June $32.50 call option on General Electric stock?
$\text { General Electric }$
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text {CALL}$ $\quad $ $\quad $ $\quad $$\text {PUT}$
$\begin{array}{rrrrrr}
\operatorname{Exp} & \text { Strike } & \text { Bid } & \text { Ask } & \text { Bid } & \text { Ask }\
\text { Jun } & 32.50 & .68 & .70 & .70 & .73 \
\text { Sep } & 32.50 & 1.60 & 1.62 & 1.64 & 1.68 \
\text { Jun } & 34.00 & .18 & .19 & 1.73 & 1.77 \
\text { Sep } & 34.00 & .93 & .95 & 2.52 & 2.56
\end{array}$
A)$.68
B)$.70
C)$.73
D)$1.60
E)$1.62

Question

What is the current price per underlying share if you wish to buy a June $32.50 call option on General Electric stock?
 $\text { General Electric }$
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text {CALL}$ $\quad $ $\quad $ $\quad $$\text {PUT}$
$\begin{array}{rrrrrr}
\operatorname{Exp} & \text { Strike } & \text { Bid } & \text { Ask } & \text { Bid } & \text { Ask }\
\text { Jun } & 32.50 & .68 & .70 & .70 & .73 \
\text { Sep } & 32.50 & 1.60 & 1.62 & 1.64 & 1.68 \
\text { Jun } & 34.00 & .18 & .19 & 1.73 & 1.77 \
\text { Sep } & 34.00 & .93 & .95 & 2.52 & 2.56
\end{array}$
A)$.68
B)$.70
C)$.73
D)$1.60
E)$1.62

Quizplus · Accepted Answer

The price of the call option is given by the option premium, which is $0.70 according to the options chain in the image provided. The strike price of the option is $32.50, which means that if the option is exercised, the holder has the right to buy GE stock at that price. Therefore, the current price per underlying share is assumed to be higher than $32.50, but we cannot determine it from the information given.

What Is the Current Price Per Underlying Share If You General Electric \text { General Electric } General Electric

What Is the Current Price Per Underlying Share If You $\text { General Electric }$