TABLE 7.1
Use the table to answer following question(s).
April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts).

-Refer to Table 7.1. The exercise price of ________ giving the purchaser the right to sell pounds in June has a cost per pound of ________ for a total price of ________.
A) 1460; 0.68 cents; $425.00
B) 1440; 1.06 cents; $662.50
C) 1450; 1.02 cents; $637.50
D) 1440; 1.42 cents; $887.50

Question

TABLE 7.1
Use the table to answer following question(s).
April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts).
 
-Refer to Table 7.1. The exercise price of ________ giving the purchaser the right to sell pounds in June has a cost per pound of ________ for a total price of ________.
A) 1460; 0.68 cents; $425.00 
B) 1440; 1.06 cents; $662.50 
C) 1450; 1.02 cents; $637.50 
D) 1440; 1.42 cents; $887.50

Quizplus · Accepted Answer

The exercise price for June is 1440 and the cost per pound for a put option at that price is 1.06 cents, so the total cost for a 62,500 pound contract would be:
62,500 x 1.06 cents = $662.50

TABLE 7.1 Use the Table to Answer Following Question(s)