What Is the Size of One Option Contract on the S&P

question 20

Multiple Choice

What is the size of one option contract on the S&P 500?

• A) 250 times the index
• B) 100 times the index
• C) 50 times the index
• D) 25 times the index

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Definitions:

McDonaldization

McDonaldization refers to the process by which the principles of the fast-food industry, including efficiency, calculability, predictability, and control, have come to dominate other sectors of society, economy, and culture.

Monopolistic Competitor

A firm operating in a market structure characterized by many sellers offering differentiated products, which are similar but not perfect substitutes.

Long Run

The Long Run is a period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Price Discrimination

A pricing tactic in which a provider offers the same or similar services or goods at different price points in various markets.