Use the Table for the Questions Below

question 67

Multiple Choice

Use the table for the questions below
Consider the following information on options from the CBOE for Rackspace.
-Assume you want to buy five call option contracts with an exercise price closest to being at-the-money and that expires December 2010.The current price that you would have to pay for such a contract is:

• A)$550
• B)$110
• C)$475
• D)$300
• E)$525

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Definitions:

General Journal

A basic accounting record for entering all types of transactions before they are transferred to specific accounts in the general ledger.

Financial Statement

Documents that report on a company's financial performance and health, including the balance sheet, income statement, and cash flow statement.

Normal Balance

is the side of an account on which increases to the account are recorded, typically either a debit for assets and expenses or a credit for liabilities, equity, and revenues.