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Basic Question 6 of 18

If an option is quoted at $14 per share, what must one pay for the option contract?

A. $140
B. $700
C. $1,400
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User Contributed Comments 7

User Comment
shasha the "rule" 100 shares per contract is for all kinds of derivatives, isn't it?
billou no
stefdunk an oil futures contract is a derivative, and no shares are involved whatsoever
anricus Is a share option always for 100 shares? What about other key commodities? Is it necessary to know the quantity? And indexes?
bobert Option contracts that are exchange traded are good for 100 shares.
gazza77 Australian ETO's are 1000 shares/contract
ankurwa10 this question is good for knowledge but i highly doubt if on standalone basis, it requires conceptual understanding. it is factual.
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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

determine the value at expiration and profit from a long or a short position in a call or put option

contrast forward commitments with contingent claims

CFA® 2025 Level I Curriculum, Volume 5, Module 2.