The Options Market

In this section, we consider the most important facets of the options market in the United States. We begin by considering the exchanges where options trade. We then consider an extended example to see how to read option prices as they appear in the Wall Street Journal. We conclude this section by analyzing the market activity in the different types of options that are traded on the various exchanges.

Reading Options Prices

Table 1.2 shows typical price quotations for options on a common stock from a U.S. newspaper. Prices are for January 26 for trading options on the stock of XYZ corporation. Oh that day, XYZ closed at 96 7/8 per share. The table shows listings for XYZ options with striking prices of $90, 95, 100, and 105. It would not be unusual for other striking prices

Table 1.2 Options Price Quotations
Optimum Options

Optimum Options

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