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Elena-2011 [213]
3 years ago
10

The following price quotations are for exchange-listed options on Primo Corporation common stock. Company Strike Expiration Call

Put Primo 61.12 55 Feb 7.25 0.48 With transaction costs ignored, how much would a buyer have to pay for one call option contract. Assume each contract is for 100
Mathematics
1 answer:
Ivenika [448]3 years ago
7 0

Answer:

$ 725

Step-by-step explanation:

Price of call option = 7.25

buyer have to pay for one call option contract. Assume each contract is for 100 = 100 * 7.25 =  $ 725

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Split 5x as the sum of 3x and 2x:

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