To Exercise a Call Option on the Dow Jones Industrial

question 5

True/False

To exercise a call option on the Dow Jones Industrial Average, an investor would need to actually buy all 30 stocks at the strike price.

---

Definitions:

Number of Hours

The total amount of time, counted in hours, spent or required for a particular activity or process.

Monthly Profit

The net amount of money gained by a business during a one-month period after all expenses have been paid.

Binding Constraint

A constraint in an optimization problem that directly limits the ability to achieve an optimal solution, where any relaxation of the constraint would improve the outcome.

Slack

The amount of time a project task can be delayed without causing a delay to subsequent tasks or the overall project deadline.