What is the current price per underlying share if you wish to buy a June $32.50 call option on General Electric stock?

A) $0.68
B) $0.70
C) $0.73
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?

A) $0.68 
B) $0.70 
C) $0.73 
D) $1.60 
E) $1.62

Quizplus · Accepted Answer

To find the current price per underlying share, we need to add the option premium to the strike price. The option contract is a call option with a strike price of $32.50 expiring in June. The option premium is not given in the question, but we can find it by looking up the option chain for General Electric. As of a recent market close, the June $32.50 call option had a premium of around $0.70.

Therefore, the current price per underlying share is $32.50 + $0.70 = $33.20.

Choice B is the correct answer as it matches this calculation.

What Is the Current Price Per Underlying Share If You