Use the Table for the Question(s)below

question 8

Multiple Choice

Use the table for the question(s) below.
Consider the following information on options from the CBOE for Merck:
-Assume you want to buy one options contract with an exercise price closest to being at-the-money and that expires January 2009.The current price that you would have to pay for such a contract is:

• A)$680
• B)$380
• C)$650
• D)$420
• E)$450

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Definitions:

Oxytocin

A hormone produced by the hypothalamus and released by the pituitary gland, playing roles in childbirth, lactation, and social bonding.

Prostaglandins

A group of lipid compounds that are produced within the body's tissues and have various functions, including involvement in inflammation and pain.

Estrogen

Substance that exerts biologic effects characteristic of estrogen hormone, such as stimulating female secondary sexual characteristics, growth, and maturation of long bones, and help controlling the menstrual cycle.

Ductus Venosus

A fetal blood vessel that connects the umbilical vein to the inferior vena cava, bypassing the liver.