You Own 2 SPX Call Options with a Strike of 1930

question 41

Multiple Choice

You own 2 SPX call options with a strike of 1930. What is the payoff at maturity for this option contract if the S&P 500 index is 1980?

• A)$0
• B)$100
• C)$2,000
• D)$10,000
• E)$15,000

---

Definitions:

Sucker Effect

A phenomenon where individuals reduce their effort in group tasks to avoid feeling like they are being exploited or doing more work than others.

Free Riding

Free riding refers to the behavior of benefiting from the contributions of others in a group or community effort without contributing oneself.

Social Loafing

The phenomenon whereby individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Ringelmann Effect

The phenomenon by which individual productivity decreases as the size of a group increases, due to coordination and motivational losses.