CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

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

A. $140
B. $700
C. $1,400
Correct Answer: C

A contract is for 100 shares.

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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