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.

---

Definitions:

Brainstorming

A creative group activity aiming to generate a large number of ideas or solutions for a specific problem.

Graphic Method

A visual representation technique used in mathematics, statistics, or business to solve problems or display data.

Mind Mapping

A diagram used to visually organize information, often used for brainstorming, planning, and understanding complex ideas.

Main Idea

The primary or central concept, point, or message that a piece of writing or speech is intended to convey.