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

Interpret the effects of changes in income and prices on a consumer's budget line and choices.

Identify the optimal combinations of goods a consumer can afford given their budget constraints.

Distinguish between different shifts in the consumer's budget line and understand the underlying reasons.

Calculate the maximum quantity of goods a consumer can purchase based on their income and the prices of goods.

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Definitions:

Spur Gears

Cylindrical gears with teeth projecting radially and having edges parallel to the axis, used to transmit motion between parallel shafts in machinery.

Pinion

A small gear that engages with a larger gear or rack, often used to convert rotational motion to linear motion or vice versa.

Mechanical Advantage

The factor by which a mechanism multiplies the force put into it, enabling the lifting or moving of heavier loads with less effort.

Pitch Diameters

The effective diameter of a screw thread, halfway between the crests and roots, used in measuring and specifying thread sizes.