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Strike Price Intervals for Equity Options Are Set at $2

Question 15

Multiple Choice

Strike price intervals for equity options are set at $2.50 intervals when the stock price is between $5 and $25,$5 intervals when the stock price is between $25 and $200,and $10 intervals when the stock price is over $200.Consider a stock that had an initial public offering price of $19,which then rose and closed at its highest level $26 at the end of the day.Which full set of strike price options are traded?


A) $15,$20,$25,and $30
B) $17.50,$20,$22.50,$25,and $30
C) $17.50,$20,$22.50,$25,$27.50,and $30
D) $20,$22.50,$25,and $30
E) $20,$25,$30,and $35

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