You have purchased one SXO call option with a strike price of 1,250. You have written one naked SXO call option with the same maturity date at a strike price of 1,200. At maturity, what is your total payoff if the S&P Canada 60 index is at 1,230?
A) $5,000
B) $1,000
C) $0
D) -$1,000
E) -$3,000

Question

You have purchased one SXO call option with a strike price of 1,250. You have written one naked SXO call option with the same maturity date at a strike price of 1,200. At maturity, what is your total payoff if the S&P Canada 60 index is at 1,230?
A) $5,000
B) $1,000
C) $0
D) -$1,000
E) -$3,000

Quizplus · Accepted Answer

The Answer of You have purchased one SXO call option with a strike price of 1,250. You have written one naked SXO call option with the same maturity date at a strike price of 1,200. At maturity, what is your total payoff if the S&P Canada 60 index is at 1,230?
A) $5,000
B) $1,000
C) $0
D) -$1,000
E) -$3,000

You Have Purchased One SXO Call Option with a Strike