Chapter 21, Problem 1P

a.

Summary Introduction

To determine:

Option contract that has most trades today.

Introduction: Option is a contract between the two person in which one agrees to buy and sell security before a specified date or on a specified date and on a specified rate. Call option and put option are two types of option.

b.

Summary Introduction

To determine:

Option contract that is being held the most overall.

c.

Summary Introduction

To calculate:

The amount of money required to purchase an option to pay the broker.

d.

Summary Introduction

To determine:

The amount of money that one will receive from selling an option.

e.

Summary Introduction

To determine:

Call and put option that are in the money.