You Own Three SPX Put Options with a Strike of 1,850.What

question 9

Multiple Choice

You own three SPX put options with a strike of 1,850.What is the payoff at maturity for this option contract if the S&P 500 index is 1,862?

• A) -$2,200
• B) -$22
• C) $0
• D) $22
• E) $2,200

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Definitions:

Funded Status

A measure of a pension plan's assets relative to its liabilities, indicating whether it has enough assets to cover its pension obligations.

Pension Discount Rate

The interest rate used to determine the present value of future pension liabilities.

Current Cash Flows

The money that is moving in and out of a business in the present time, especially as it pertains to operating activities.

Past Service Costs

Costs related to pension plan benefits earned by employees in prior periods, which are recognized in the current period due to plan amendments or changes.