Bob's DJIA Index Call Option Had a Strike Price of 261

question 122

Multiple Choice

Bob's DJIA Index call option had a strike price of 261. When he exercised the option, the Dow was at 26,350.

• A) Bob received $2,500 from the writer of the contract.
• B) Bob paid $250 to the writer of the contract.
• C) Bob received $250 from the writer of the contract.
• D) Bob paid $2,500 to the writer of the contract.

---

Definitions:

Optimum Viewing

The best or most favorable conditions for seeing or observing something.

Smartphones and Tablets

Portable electronic devices with touchscreens used for a variety of tasks, including communication, internet browsing, and media consumption.

Mobile Communication Technology

Technologies that enable communication and data exchange through mobile devices such as smartphones and tablets.

Immediate Access

The ability to obtain or use resources, information, or services without delay.