Answer:
$2,680
Explanation:
From the question above the April 9, 2015 price quotation for a call option on LTD stock is $26.80
It has a strike price of $74
The call option is due to expire in the month of December.
The LTD stock price is given as $75.80
Therefore, the premium on one LTD December 74 call contract can be calculated as follows
= $26.80×100
= $2,680
Hence the premium on one LTD December 74 call contract is $2,680
