Suppose That You Purchased a Call Option on the S&P

question 65

Multiple Choice

Suppose that you purchased a call option on the S&P 100 Index.The option has an exercise price of 1,680, and the index is now at 1,720.What will happen when you exercise the option?

• A)You will have to pay $1,680.
• B)You will receive $1,720.
• C)You will receive $1,680.
• D)You will receive $4,000.

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Definitions:

Desensitization

A psychological process that reduces the emotional responsiveness to a negative, arousing, or positive stimulus after repeated exposure to it.

Obsessive-Compulsive Disorder

A mental health disorder characterized by recurrent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the individual feels driven to perform.

Severe Anxiety

A heightened state of excessive worry and fear that is intense enough to interfere with daily activities.

Dissociative Identity Disorder

A complex psychological condition characterized by the presence of two or more distinct personality states or identities within a single individual, often a result of severe trauma during early childhood.