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When a Stock Index Option Is Exercised, the Cash Payment

Question 21

Multiple Choice
When a stock index option is exercised, the cash payment is equal to a specified dollar amount

When a stock index option is exercised, the cash payment is equal to a specified dollar amount


A) multiplied by the index level.
B) multiplied by the exercise price.
C) multiplied by the difference between the index level and the exercise price.
D) multiplied by the sum of the index level and the exercise price.

Correct Answer:

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