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

question 49

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.
• E) You will have to pay $4,000.

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Definitions:

Nucleotides

Nucleotides are the basic building blocks of nucleic acids like DNA and RNA, consisting of a sugar, a phosphate group, and a nitrogenous base.

Nucleotide

Monomer of nucleic acids; small molecule with a ribose or deoxyribose sugar, a nitrogen-containing base, and one, two, or three phosphate groups. E.g., adenine, guanine, cytosine, thymine, uracil.

Nitrogen-Containing Base

One of the building blocks of DNA and RNA molecules, including adenine, guanine, cytosine, thymine (in DNA) and uracil (in RNA), which are key to encoding genetic information.

Phosphate Group

A functional group consisting of a phosphorus atom bonded to four oxygen atoms, important in energy transfer and storage molecules like ATP.