The bid and ask price of the October $80 SPX put options are $4.10 and $4.15,...
The bid and ask price of the October $80 SPX put options are $4.10 and $4.15, respectively. If you want to buy 5 put options, what is the total cost today?
A) $2,460
B) $2,490
C) $24.60
D) $24.90
Homework Answers
The put options will be bought at the ask price because that is the lowest price quoted by the seller of options
Cost of 5 put options = 5 * cost of 1 option = 5 * $4.15 = $20.75
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