You Purchased One SPX Call Option with a Strike of 1,400

question 4

Multiple Choice

You purchased one SPX call option with a strike of 1,400. You wrote one SPX call option with the same maturity date and a strike of 1,350. At maturity, what is your payoff if the S&P 500 is at 1,375?

• A) -$3,000
• B) -$300
• C) $30
• D) $300
• E) $3,000

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Definitions:

Coalitions Form

The process by which groups come together to form alliances, often to achieve a common goal or address a shared concern.

Properties

Characteristics, attributes, or traits that define an object, situation, or entity, making it distinguishable from others.

Coalition

An alliance among individuals or groups, especially during a negotiation or in politics, to achieve a common goal.

Bedfellows

Unlikely or surprising partners united by common interests or objectives.