Use These Option Quotes to Answer This Question

question 89

Multiple Choice

Use these option quotes to answer this question:

-You want to sell four call option contracts on ZZ Industries stock at a strike price of $32.50 a share.How much will you receive in option premiums if you place this order today?

• A) $300
• B) $1,290
• C) $1,320
• D) $728
• E) $546

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Definitions:

Average Tax Rate

The proportion of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Horizontal Equity

The principle that individuals with similar income or assets should pay the same amount in taxes.

Vertical Equity

A principle in taxation where taxpayers with a greater ability to pay, pay more in taxes, demonstrating a progressive tax system.

Small Economy

An economy that is limited in size, characterized by a smaller population, lower GDP, and less impact on international markets compared to larger economies.