curl joe asked:


I see that a call for payx Jan 09 is around $4.40 at $50 strike - now if i bought one contract that would cost $440 right? also if i bought this planning to trade it later and not ever excersice it would i be fine with only the $440 or do i need enough $ in my account to cover the stock when it is exercised? im getting confused when someone says i need to have enough to cover my bets - i just wanna buy a Jan 09 call for $440 and sell it in 6 months - how much would i need to buy that?

thanks