You observe the following quote for a call option on MSFT. The option has a strike price of $255 and expires on June 18, 2021: Bid: $6.14 Ask: $7.06 If you want to buy 9 contracts of the option, how much will you need to pay?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter20: Financing With Derivatives
Section: Chapter Questions
Problem 1P
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You observe the following quote for a call option on MSFT. The option has a strike price of $255 and expires on June 18, 2021:

Bid: $6.14

Ask: $7.06

If you want to buy 9 contracts of the option, how much will you need to pay?

 

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