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

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Definitions:

Investment Centres

Units or divisions within a company that are responsible for making investment decisions and are evaluated based on their return on investments.

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated as the return relative to the investment’s cost.

Residual Income

A measure of performance and profitability calculated as the net operating income after deducting a charge for the cost of capital.

Investment Centre Performance

An evaluation of a business unit's profitability and efficiency in managing its assets to generate profits.