You Want to Sell Three Call Option Contracts on ZZ

question 92

Multiple Choice

You want to sell three call option contracts on ZZ Industries stock at a strike price of $30 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) $561
• E) $546

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Definitions:

Black Market

An illegal trade of goods or services that are not sanctioned by the authority, often to avoid taxes or because the goods are prohibited.

Gray Market

involves the trade of legal goods through unauthorized, unofficial, or unintended channels, usually not illegal but discouraged by manufacturers.

Resource Market

The marketplace where resources or inputs (like labor, capital, and raw materials) used to produce goods and services are bought and sold.

Excess Burden

Refers to the cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.