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:

Placebo Group

A control group in a study that receives a sham treatment, allowing researchers to compare the effects of the real treatment on another group.

Treatment

Treatment encompasses the methods and applications used to manage or cure disease, relieve symptoms, or address psychological issues.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact through controlled investigation.

Control Group

A control group is a baseline group in an experiment that does not receive the experimental treatment, used for comparison against the experimental group.