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

---

Definitions:

Groupthink

A phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Collaboration

Working together with one or more people to achieve a common goal or complete a task.

Wider Knowledge Base

An extensive scope of information and understanding across various subjects or fields.

Inferior Document

A document deemed to be of low quality or value, often because of inaccuracies, poor structure, or lack of clarity and coherence.