How much does it cost to buy a stock option
24 Jun 2019 For this example, the trader will buy only 1 option contract (Note: 1 contract is for 100 shares) so the total cost will be $60 ($0.60 x 100 shares/contract). This time, think about how far away from the current stock price of $50, Option contracts give the buyer the right to buy or sell 100 shares of the underlying stock. Therefore, when you calculate the cost for an option you need to multiply 2 Nov 2015 Options are much more common in small companies, but for various If the company is sold for $10/share, you can buy your stock at is a definite cost, and is another reason to decrease your valuation of your options.