Laney just purchased 3 call option contracts on Microsoft stock. How many shares of stock can she buy at the strike price based on these contracts?
A)3
B)30
C)300
D)30,000
E)300,000

Question

Quizplus · Accepted Answer

Each standard call option contract in the United States represents the right to buy 100 shares of the underlying stock, so 3 contracts would represent 300 shares.

Laney Just Purchased 3 Call Option Contracts on Microsoft Stock