You own 3 SPX put options with a strike of 1850. What is the payoff at maturity for this option contract if the S&P 500 index is 1862?
A)−$2,200
B)−$22
C)$0
D)$22
E)$2,200

Name: You own 3 SPX put options with a strike of 1850. What is the payoff at maturity for this option contract if the S&P 500 index is 1862? A)−$2,200 B)−$22 C)$0 D)$22 E)$2,200
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Question

Quizplus · Accepted Answer

Since the S&P 500 index is above the strike price of the put options at maturity, the options expire worthless, resulting in a payoff of $0.

You Own 3 SPX Put Options with a Strike of 1850