Suppose That You Purchased a Call Option on the S&P

question 49

Multiple Choice

Suppose that you purchased a call option on the S&P 100 Index. The option has an exercise price of 1,680, and the index is now at 1,720. What will happen when you exercise the option?

• A) You will have to pay $1,680.
• B) You will receive $1,720.
• C) You will receive $1,680.
• D) You will receive $4,000.
• E) You will have to pay $4,000.

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