What Amount Must a Call Writer Pay If a Cash-Settled

question 10

Multiple Choice

What amount must a call writer pay if a cash-settled index call is exercised?

• A) difference between the index level and the exercise price
• B) exercise price
• C) difference between the exercise price and the index level
• D) index level
• E) none of the above

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Definitions:

Restrictive Trade Practice

Business practices that limit competition or control prices, often viewed negatively and regulated by law.

Misleading Advertising

Advertisements or promotional materials that deceive or lie to consumers, causing them to have false impressions or understandings.

Competition Act

Legislation meant to prevent anti-competitive practices in the marketplace, protecting consumer interests and promoting fair trade.

Double-ticketing

The practice of showing more than one price for the same item and charging the higher price at the checkout.