At Expiration, the Writer of a Stock Index Call Option

question 50

Multiple Choice

At expiration, the writer of a stock index call option that was written at the money will be required to:

• A) deliver the underlying stocks in the index if the index value moves up.
• B) deliver the underlying stocks in the index if the index value moves down.
• C) deliver a cash value if the index value moves up.
• D) deliver a cash value if the index value moves down.

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Definitions:

Action Potentials

Electrical impulses that travel along neurons, allowing them to communicate with each other and with other types of cells.

Terminal Buttons

The small knobs at the end of an axon that release chemical signals from the neuron into the synapse to stimulate the next neuron.

Stimulation

The activity of promoting or encouraging a physical or biological response through external or internal factors.

All-or-none

A principle stating that the strength of a response of a nerve cell or muscle fiber is not dependent on the strength of the stimulus. If a stimulus is above a certain threshold, a nerve or muscle fiber will fire.