You Have Purchased One SXO Put Option with a Strike

question 64

Multiple Choice

You have purchased one SXO put option with a strike price of 1,350. You have also written one SXO put option with the same maturity date at a strike price of 1,300. At maturity, what is your total payoff if the S&P Canada 60 index is 1,290?

• A) $3,000
• B) $0
• C) $6,000
• D) -$6,000
• E) $5,000

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Definitions:

Counterconditioning

A therapeutic process aimed at reversing the negative effects of a conditioned response by introducing a new, positive stimulus.

Learned Response

A behavior or reaction acquired or modified by the association of a stimulus and a response.

Apparent Extinction

A situation where a species appears to be extinct based on the lack of observed individuals, but may still have surviving members in unobserved areas.

Social-Cognitive Theorists

Researchers who study how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.