option contracts

CFA Level II Derivatives
#1

I think I haven’t been exposed to enough problems involving option contracts that cover a number of shares.

For example, let’s say we want to generate income so we sell calls to do that. Each call gets us a premium of 2. Let's say we do this on our full position of 1,000 apple shares. Our income is 1ks hs \* 2=$2,000 income?

But how do I calculate income in the case where a contract covers, say, 100 shares?

thnx!

#2

Well each contract will have a certain number of options. So 1 contract = 100 options or something like that.

Can you be more specific though?

#3

I may have just confused myself my apolgies!