The Profit of an Index Option Is Determined By

question 57

Multiple Choice

The profit of an index option is determined by:

• A)the total value of the increase in the index.
• B)the total value of the option.
• C)the size of the premium.
• D)More than one above

---

Definitions:

Social Facilitation

The tendency for people to perform differently, usually better, when in the presence of others than when alone.

Social Loafing

Social loafing is the phenomenon observed when individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Tips

Practical advice or suggestions aimed at improving a situation or accomplishing a task more effectively.

Profits

The financial gain obtained when revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.