An Investor Who Exercises a Call Option on a S&P

question 70

Multiple Choice

An investor who exercises a call option on a S&P 500 ETF will

• A) purchase ETF shares at the strike price.
• B) receive a cash settlement equivalent to the difference between the strike price and the current level of the index.
• C) receive a cash settlement equivalent to the difference between the strike price and 100 times the current level of the index.
• D) receive a cash settlement equivalent to the difference between the strike price and the current price of the ETF.

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Definitions:

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The process by which individuals from other countries move to a new country to reside permanently in accordance with its laws.

Economic Effects

The broad impact of financial activities and policies on a country's economy, including factors like growth, employment, and inflation.

Immigration

The process by which individuals move into a country of which they are not natives or where they do not possess citizenship, in order to settle or reside there.

Tax Revenues

The income that is received by a government from taxpayers within its jurisdiction, used to fund public services and obligations.