Question

In: Finance

which of the following statement is INCORRECT for option chains? a- put and call contract out...

which of the following statement is INCORRECT for option chains?

a- put and call contract out of the money are commonly highlighted

b- the greek option chains are usually available for analysis

c- bid and ask prices are provided for all the available contracts

d- open interest provides the number of outstanding contract for each put and call strike price

e- the provide a list of all the available expiration dates for put and call option contract

Solutions

Expert Solution

The above attached image is of NASDAQ option chain we can cleary see that option a (put and call contract out of the money are commonly highlighted) is not True or holds incorrect as:
1) Once you select any option you'll be able to see the greeks for it(https://www.nasdaq.com/symbol/ndaq/option-chain/180518C00077500-ndaq-call)
2)Bid and ask price for each contract is available
3)Open interest tells the ' the number of contracts or commitments outstanding in futures and options trading on an official exchange at any one time'
4)18th May 2018 is the option expiration date
So from the above we can say that 'put and call contract out of the money are NOT commonly highlighted'


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