The May 17, 2020, price quotation for a Boring call option with a strike price of $52 due to expire in November is $21.30, while the stock price of Boring is $70.30. The premium on one Boring November 52 call contract is _________.
$2,080
premium= $20.80*100


Answer :

The premium on one Boring November 52 call contract is $2130

What is stock price?

The stock price is the price that a share of stock is presently trading for on the market. A price that, ideally, corresponds to the value of the company itself is allocated to each share of a publicly listed company when it is issued. The supply and demand for shares, which are driven by investors looking to purchase or sell shares, affect stock prices. Despite the fact that these transactions affect stock values, it is impossible to forecast how they will change.

call option premium = call price = 21.30

contract size = 100

total premium on call contract = call price * contract lot

= 21.30*100

= $2130

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