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:

Natural Environment

The physical, biological, and chemical surroundings in which living organisms interact and are affected.

Environmental Capital

The natural assets of the planet, including air, water, and land, which provide goods and services crucial for human welfare and economic activities.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.

Innovation Process

A series of steps that includes the generation, development, and implementation of new ideas, products, or processes.