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

---

Definitions:

Socialism

A political and economic theory advocating for the means of production, distribution, and exchange to be owned or regulated by the community as a whole.

Manufacturing

The process of producing goods using labor, machines, tools, and chemical or biological processing or formulation.

Labor Force

The total number of people employed or seeking employment in a country or region.

Global Economy

The interconnected worldwide economic activities that determine the production, distribution, and consumption of goods and services across different countries.