Use the Table for the Questions Below

question 84

Multiple Choice

Use the table for the questions below
Consider the following information on options from the CBOE for Rackspace.
-Assume you want to buy 10 put option contracts with an exercise price closest to being at-the-money and that expires January 2011.The current price that you would have to pay for such a contract is:

• A)$1750
• B)$2000
• C)$1950
• D)$2200
• E)$2550

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Definitions:

Stagnation

A state of inactivity or lack of growth and development in an economy, market, or industry.

Legal Realism

Legal Realism is a school of legal thought that emphasizes the real-world outcomes of law and legal processes over the abstract formulations of statutes and legal principles.

Courts of Chancery

Historical courts in England and later some states in the US, dealing with cases involving equity, including trusts, land law, and guardianships.

Common-law Courts

are courts that base their decisions on the principles and traditions of common law, which is law developed through court decisions over time, as opposed to statutory laws.