You Own One SPX Put Option with a Strike of 1,400

question 91

Multiple Choice

You own one SPX put option with a strike of 1,400. What is the payoff at maturity for this option contract if the S&P 500 index is 1,422?

• A) -$3,600
• B) -$36
• C) $0
• D) $36
• E) $3,600

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Definitions:

Seismograms

The recorded output of a seismograph, which shows the motion of the ground during an earthquake or other seismic event.

Nomogram

A graphical calculating device, a two-dimensional diagram designed to allow the approximate graphical computation of a function.

Seismic Station

A facility equipped with instruments for detecting and recording earthquakes and other ground vibrations.

Major Earthquake

A seismic event of considerable magnitude, typically causing widespread damage and possibly tsunamis.