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.
Correct Answer:
Verified
Q106: ETF options are settled in
A) cash.
B) ETF
Q112: The premium on a stock index call
Q114: Anthony is confident that shares of SolarTech
Q121: Which of the following statements concerning Long-term
Q123: Stock index options can be used for
Q124: The value of an interest rate call
Q125: If yields on Treasury bonds rise
A)the value
Q125: Which of the following methods might be
Q126: Explain how an investor can use a
Q128: An investor who exercises a call option
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents