The following price quotations on WFM were taken from the Wall Street Journal. The premium on one WFM February 85 call contract is
A)$8.875.
B)$887.50.
C)$412.50.
D)$158.00.

Question

The following price quotations on WFM were taken from the Wall Street Journal.  The premium on one WFM February 85 call contract is
A)$8.875. 
B)$887.50. 
C)$412.50. 
D)$158.00.

Quizplus · Accepted Answer

8 7/8 = $8.875 × 100 = $887.50.Price quotations are per share; however, option contracts are standardized for 100 shares of the underlying stock; thus, the quoted premiums must be multiplied by 100.

The Following Price Quotations on WFM Were Taken from the Wall