What Is the Cost to Buy Four March 30 Call

question 345

Multiple Choice

What is the cost to buy four March 30 call option contracts on KX stock given the following price quotes?
KX (KX) Underlying stock price: 33.65

• A) $365
• B) $370
• C) $1,420
• D) $1,460
• E) $1,480

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Definitions:

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, giving them rights to dividends and voting in shareholder meetings.

Net Income

Net earnings of a company, calculated by subtracting all costs, including taxes and expenses, from its overall revenue.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn reduces the price per share.