The following price quotations were taken from the Wall Street Journal. $$\begin{array} { c c c }
& \text { Strike } & \
\text { Stock Price } & \text { Price } & \text { February } \
917 / 8 & 85 & 73 / 8 \
917 / 8 & 90 & 31 / 8 \
917 / 8 & 95 & 5 / 8 \
\hline
\end{array}$$ The premium on one February 90 call contract is

Question

The following price quotations were taken from the Wall Street Journal. $$\begin{array} { c c c } 
& \text { Strike } & \
\text { Stock Price } & \text { Price } & \text { February } \
917 / 8 & 85 & 73 / 8 \
917 / 8 & 90 & 31 / 8 \
917 / 8 & 95 & 5 / 8 \
\hline
\end{array}$$ The premium on one February 90 call contract is

Quizplus · Accepted Answer

The premium is calculated by multiplying the option price (31/8 or 3.875) by 100 (since each contract is for 100 shares), resulting in $312.50.

The Following Price Quotations Were Taken from the Wall Street