Do I have enough size?

What this options contract-sizing question tests

This is an easy options fundamentals question designed to ensure you understand the mechanics of equity option contracts and can quickly convert between contract notation and real dollar amounts. It is a baseline check that traders and risk managers use to confirm a candidate can move fluently between the abstraction layer (contracts, strikes, premiums) and the concrete layer (shares, capital, settlement).

The question rewards clarity on how standard equity option contracts scale and what "exercise" means in practice. Interviewers use this type of drill to verify you can avoid costly mistakes in position sizing and capital allocation before moving to more complex derivatives problems.

• Standard contract multipliers in equity options
• Strike price and intrinsic value at exercise
• Distinction between contracts and underlying share counts
• Capital requirements for assignment and settlement