Question

If you buy a call option on Google stock at a strike price of $1,262.50 and...

If you buy a call option on Google stock at a strike price of $1,262.50 and a premium of 80 cents, what did you buy?

1.

The right to sell 100 shares of Google stock at 80 cents a share.
2.

The right to sell a share of Google stock at $1,262,50 per share.
3.

The right to buy a share of Google stock at $1,262,50 per share.
4.

The right to buy 100 shares of Google stock at a price of $1,262.50 per share.
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