Today on August 11 Apple's stock (AAPL) trades at a spot price of $180 per share. A trader decides to buy a European call option contract (written on 100 shares) on the stock with a strike price of $175 and maturity day August 18, 2023. The price of the European call option is $4.45. Select the correct answers: The trader obtained the right to buy 100 shares for $180 per share on August 18, 2023. The trader obtained the right to sell 100 shares for $180 per share on August 18, 2023. The trader has to pay $445 for the call option. The trader obtained the right to sell 100 shares for $175 per share on August 18, 2023. The trader has to pay $17,500 for the call option. The trader obtained the right to buy 100 shares for $175 per share on August 18, 2023.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Today on August 11 Apple's stock (AAPL) trades at a spot price of $180 per share. A trader decides
to buy a European call option contract (written on 100 shares) on the stock with a strike price of
$175 and maturity day August 18, 2023. The price of the European call option is $4.45.
Select the correct answers:
The trader obtained the right to buy 100 shares for $180 per share on August 18, 2023.
The trader obtained the right to sell 100 shares for $180 per share on August 18, 2023.
The trader has to pay $445 for the call option.
The trader obtained the right to sell 100 shares for $175 per share on August 18, 2023.
The trader has to pay $17,500 for the call option.
The trader obtained the right to buy 100 shares for $175 per share on August 18, 2023.
Transcribed Image Text:Today on August 11 Apple's stock (AAPL) trades at a spot price of $180 per share. A trader decides to buy a European call option contract (written on 100 shares) on the stock with a strike price of $175 and maturity day August 18, 2023. The price of the European call option is $4.45. Select the correct answers: The trader obtained the right to buy 100 shares for $180 per share on August 18, 2023. The trader obtained the right to sell 100 shares for $180 per share on August 18, 2023. The trader has to pay $445 for the call option. The trader obtained the right to sell 100 shares for $175 per share on August 18, 2023. The trader has to pay $17,500 for the call option. The trader obtained the right to buy 100 shares for $175 per share on August 18, 2023.
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