You Own One SPX Call Option with a Strike of 1,400.What

question 28

Multiple Choice

You own one SPX call option with a strike of 1,400.What is the payoff at maturity for this option contract if the S&P 500 index is 1,414?

• A)$0
• B)$14
• C)$140
• D)$1,400
• E)$14,000

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Definitions:

Dissolution

The process of officially ending the existence of a legal entity such as a corporation or partnership.

Authority of a Partner

The power granted to a partner in a partnership to act on behalf of the partnership and legally bind the business in contracts and agreements.

Not Reasonably Practicable

A legal standard indicating something cannot be done in a feasible manner under the circumstances.

Operation of Law

A legal term that indicates a right or liability is created or extinguished automatically due to existing laws, rather than by the act of a party.