Use These Option Quotes to Answer This Question

question 23

Multiple Choice

Use these option quotes to answer this question:

-The price you will pay (per underlying share) to buy the 50 call option on JL stock is:

• A) $4.75.
• B) $4.80.
• C) $5.00.
• D) $5.90.
• E) $6.00.

---

Definitions:

Accounting Equation

The fundamental equation of accounting stating that Assets = Liabilities + Owners’ Equity.

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends.

Accounts Payable

The sum of funds that a company is required to pay to its suppliers for goods and services obtained on credit.

Retained Earnings Account

An equity account that represents the cumulative earnings of a company that have not been distributed to shareholders as dividends.