You Purchased One SPX Call Option with a Strike of 1,500.You

question 68

Multiple Choice

You purchased one SPX call option with a strike of 1,500.You wrote one SPX call option with the same maturity date and a strike of 1,450.At maturity,what is your payoff if the S&P 500 is at 1,475?

• A) -$2,500
• B) -$250
• C) $25
• D) $250
• E) $2,500

---

Definitions:

Standard Normal Distribution

A standard normal distribution characterized by a mean of 0 and a standard deviation of 1.

Exponential Probability Distribution

A continuous probability distribution that is useful in computing probabilities for the time it takes to complete a task.

Continuous Random Variable

A variable that can take an infinite number of values within a given range, where any value is possible within the continuum.

Continuous Random Variable

A variable that can assume an infinite number of values in a continuous range.