What Is the Cash Settlement If a Call Futures Option

question 5

Multiple Choice

What is the cash settlement if a call futures option on 50 units of the underlying asset is exercised?

• A) (Current Futures Price - Strike Price) times 50
• B) (Strike Price - Current Futures Price) times 50
• C) (Most Recent Futures Settlement Price - Strike Price) times 50
• D) (Strike Price - Most Recent Futures Settlement Price) times 50

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Definitions:

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Korsakoff's Syndrome

A chronic memory disorder often caused by severe deficiency of vitamin B1, most commonly due to alcohol misuse.

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A water-soluble B-vitamin (B1) essential for carbohydrate metabolism and neural function.