Use the Table for the Question(s) Below

question 69

Multiple Choice

Use the table for the question(s) below.
Consider the following information on options from the CBOE for Rackspace.

-Assume you want to buy five call option contracts that with an exercise price closest to being at-the-money and that expires December 2010. The current price that you would have to pay for such a contract is ________.

• A) $550
• B) $110
• C) $475
• D) $300

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Definitions:

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activity into operating, investing, and financing activities.

Operating Activities

Transactions and events that relate to the primary operations of the company, including revenue and expense activities.

Fully Depreciated

A state where an asset has reached the end of its useful life for accounting purposes, with its cost fully allocated to depreciation expense over its useful life.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.