You Purchase a SXO Index Call Option with a Strike

question 136

Multiple Choice

You purchase a SXO index call option with a strike price of 1,200 and a premium of $17. What is your profit if the S&P Canada 60 index is 1,253 at expiration? The multiplier used for SXO is $100.

• A) $5,300
• B) $360
• C) $530
• D) $3,600
• E) $5,283

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Definitions:

Ending Balance

The difference between footings in a T account.

Asset Turnover Ratio

A ratio that indicates how efficiently a company uses its assets to generate sales and thus helps measure the overall efficiency of the company.

Net Sales

The amount of revenue from sales transactions after deductions for returns, allowances, and discounts have been taken into account.

Accounts Receivables

Accounts Receivables are amounts owed to a business by its customers for goods or services delivered on credit, representing assets on the balance sheet.