Bob's DJIA Index Call Option Had a Strike Price of 181.When

question 28

Multiple Choice

Bob's DJIA Index call option had a strike price of 181.When he exercised the option, the Dow was at 18,350.

• A)Bob received $2,500 from the writer of the contract.
• B)Bob paid $250 to the writer of the contract.
• C)Bob received $250 from the writer of the contract.
• D)Bob paid $2,500 to the writer of the contract.

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Definitions:

Recessive

A genetic characteristic that is expressed in an organism's phenotype only when two copies of the gene responsible for the trait are present.

Phenotype

The observable physical or biochemical characteristics of an organism, as determined by both genetic makeup and environmental influences.

Homozygous

Referring to an individual having two identical alleles for a particular gene or trait.

Genotype

The genetic makeup of an organism, consisting of both visible and non-visible traits, which lays the foundation for the organism's phenotype.