A commodity market is in contango if the spot price is lower than the futures price. A contango position is the futures position you hold with a price higher than spot price.

To calculate the value of 14K gold based on the Spot Price:

(Grams) x (Spot Price x .02720) = Value

22 x (1100.00 x .02720) = $423.25

SPOT PRICE VARIES TICK BY TICK OR SECOND BY SECOND WHEN THE EXCHANGES ARE ACTIVE , USUALLY BETWEEN SUNDAY 4 PM (PST ) TILL FRIDAY 5:30 (PST) .

TO SEE WHAT THE CURRENT ACTIVE SPOT PRICE IS VISIT WWW.KITCO.COM FOR SPOT PRICES OF GOLD. try this site its useful

http://gold-price-blog.info/

If the spot price of the stock exceeds the "strike price" in the call option, the option is in-the-money and you can exercise it. But if you have a choice, wait to exercise it until the stock's spot price exceeds the strike price enough to cover the premium.

Example: the strike price is $40 and the premium was $2. In order to make money on this option, the stock price needs to be over $42--enough to pay for the stock and replace the money you spent buying the option.

$4.49