Bob's DJIA Index Option Had a Strike Price of 125

question 84

Multiple Choice

Bob's DJIA Index option had a strike price of 125. When he exercised the option, the Dow was at 13,050.

• A) Bob received $5,500 from the writer of the contract.
• B) Bob paid $550 to the writer of the contract.
• C) Bob received $550 from the writer of the contract.
• D) Bob received $55,000 from the writer of the contract.

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Definitions:

Insect Species

The various types of insects, classified into species based on shared characteristics, playing pivotal roles in ecosystems as pollinators, predators, and food sources for other organisms.

Widely Used Pesticides

Pesticides that are commonly used in agriculture and urban settings to control pests and diseases.

Pests

Organisms considered undesirable because they cause damage to agriculture, homes, or human health.

Atrazine

A herbicide widely used to control broadleaf and grassy weeds in crops, though concerns exist regarding its environmental and health impacts.