Series 7 Exam Question 82: Answer and Explanation

Question: 82

Since Jim's index options are in the money, he would like to exercise them. Once exercised, Jim will receive

  • A. cash
  • B. 100 shares of the index
  • C. either (A) or (B)
  • D. neither (A) nor (B)

Correct Answer: A

Explanation:

A. The settlement for index options is always cash.

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