How Is a Stock Index Future Quoted?
Index options, like all options, are simply the right to buy or to sell a given security at an agreed-upon price. The right to buy is called a call option, while the right to sell is called a put option.
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Background
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Index options are traded and quoted on the Chicago Board of Options Exchange, or CBOE. Price quotes are available online at the site, as are a series of tutorials.
Puts and Calls
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The CBOE lists the buy and sell prices---or bid and ask prices---of puts and calls in separate tables.
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Price Listing
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Each option will display in a table with the name of the underlying security or index, the strike price---or the price the option trading partners agree they will be bought or sold---the expiration date, the most recent price and the current bid price (what people are offering to buy the option for), and the current ask point (what people are willing to sell the option for). You will also see the percentage change in price for the day and the current number of options traded that day.
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