You Purchased One SPX Put Option with a Strike of 1,400.You

question 1

Multiple Choice

You purchased one SPX put option with a strike of 1,400.You wrote one SPX put option with the same maturity date and a strike of 1,300.At maturity,what is your total payoff if the S&P 500 index is 1,320?

• A) -$8,000
• B) -$2,000
• C) $2,000
• D) $4,000
• E) $8,000

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Definitions:

Mollusks

Invertebrates with a soft body, often protected by a hard shell, belonging to the phylum Mollusca, which includes snails, clams, and squids.

Common

Referring to something that is usual, typical, or shared among multiple entities or individuals.

Protonephridia

A network of tubules with ciliated structures known as flame cells that function in excretion and osmoregulation in certain invertebrates.

Metanephridia

The excretory organs of annelids and mollusks; each consists of a tubule open at both ends; at one end a ciliated funnel opens into the coelom, and the other end opens to the outside of the body.