Examlex

Solved

You Have Decided to Buy 10 January 2009 Call Options

question 25

Essay

You have decided to buy 10 January 2009 call options on Merck with an exercise price of $45 per share.How much will this transaction cost you and are these contracts in or out of the money?


Definitions:

Contract Maturity

The designated date on which the principal amount of a financial instrument such as a bond, loan, or futures contract becomes due and payable.

August Futures Contract

A standardized contract to buy or sell a specific commodity or financial instrument at a predetermined price at a specified time in August.

Ethanol

A renewable fuel made from various plant materials, used as an additive to gasoline to reduce emissions.

U.S. Gallons

A unit of volume measurement in the United States Customary system, different from the imperial gallon, used primarily for measuring liquids.

Related Questions