You Find Digital Option Quotes on Jobless Claims

question 69

Multiple Choice

You find digital option quotes on jobless claims.You can buy a call option with a strike price of 300,000 jobless claims.This option pays $100 if actual claims exceed the strike price and pays zero otherwise.The option costs $68.A second digital call with a strike price of 305,000 jobless claims is available at a cost of $53.Suppose you buy the option with the 300,000 strike and sell the option with the 305,000 strike and jobless claims actually wind up at 303,000 your net profit on the position is ______.

• A) -$15
• B) $200
• C) $85
• D) $185

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Definitions:

Oedipus Complex

A psychoanalytic theory that describes a child's feelings of desire for their opposite-sex parent and jealousy toward their same-sex parent.

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, developed by Sigmund Freud.

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in decision making, planning, problem-solving, self-control, and moderating social behavior.

Amygdala

A region of the brain involved in emotional processes, including fear and pleasure responses.