Suppose That You Purchased a Call Option on the S&P

question 104

Multiple Choice

Suppose that you purchased a call option on the S&P 100 index.The option has an exercise price of 700 and the index is now at 760.What will happen when you exercise the option?

• A)You will have to pay $6,000.
• B)You will receive $6,000.
• C)You will receive $700.
• D)You will receive $760.
• E)You will have to pay $7,000.

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Definitions:

Inflation

The velocity at which the universal price point for goods and services escalates, reducing the ability to make purchases.

Frictionally Unemployed

Individuals who are temporarily out of work while transitioning from one job to another.

Skills

The abilities and expertise that individuals acquire through training or experience that enhance their capacity to perform tasks effectively.

Construction Workers

Skilled and unskilled workers involved in the physical construction of infrastructure, buildings, and other real estate projects.