Assume You Are Reviewing a Table That Lists the Current

question 99

Multiple Choice

Assume you are reviewing a table that lists the current stock option contracts and quotes.Which one of these statements would correctly apply to that table?

• A)If you write a contract you will pay the bid price per share listed in the table.
• B)If you write a contract you will receive the difference between the bid and ask prices per share.
• C)The bid price on a specific contract will be higher than the ask price on that same contract.
• D)To purchase one contract you must pay 1000 times the quoted bid price shown in the table.
• E)To purchase one contract you must pay 100 times the quoted ask price shown in the table.

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Definitions:

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The competence of an individual or a group in executing a certain economic task with greater efficiency than an alternative one.

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Devices designed to aid in finding one's way by indicating the direction in relation to the Earth's cardinal points.