You Have Purchased One SXO Call Option with a Strike

question 130

Multiple Choice

You have purchased one SXO call option with a strike price of 1,250. You have written one naked SXO call option with the same maturity date at a strike price of 1,200. At maturity, what is your total payoff if the S&P Canada 60 index is at 1,230?

• A) $5,000
• B) $1,000
• C) $0
• D) -$1,000
• E) -$3,000

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Definitions:

Market Share

is the percentage of an industry's sales that a particular company controls, serving as a measure of its competitiveness.

Extended Warranty

An additional guarantee offered on a product, extending the period during which a manufacturer or retailer promises to repair or replace it.

Introversion

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation.

Extraversion

A personality trait characterized by outgoingness, high energy, and sociability.