Assume you are reviewing a table that lists the current stock option contracts and quotes.On a specific contract the table shows an option interest value of 38 and volume of 9.This means that:
A)9 contracts were exercised on that day while 38 more were traded.
B)38 contracts were traded on that day compared to only 9 traded on the previous day.
C)9 contracts were traded on that day at a price of $.38 per share.
D)38 contracts were traded on that day at the bid price and 9 were traded at the ask price.
E)9 of the 38 outstanding contracts traded on that day.

Question

Quizplus · Accepted Answer

Option interest represents the total number of outstanding contracts for a particular option. So, in this case, there were 38 outstanding contracts and 9 of them traded on that day, which means that those 9 contracts changed ownership. Therefore, choice E is the correct answer.

Assume You Are Reviewing a Table That Lists the Current