2. Question 39

   1 Point

   Suppose S&P 500 Index is 1250 today. You purchase a contract of index option on S&P 500 with strike price of 1230 with the premium of 35. Suppose you exercise this option when the index becomes 1330. What is the profit you make out of one contract of this index option? The multiplier for the S&P 500 Index option is 100.

   1. $4000

   2. $5000

   3. $6500

   4. $7000

   5. $10000

3. Question 40

   1 Point

   You have one long position on silver forward contract with the price of 510 cents per troy oz. If the spot price at maturity is 530 cents per troy oz, what is your profit? One forward contract of silver is for 5000 troy oz.

   1. $-1000

   2. $-500

   3. $0

   4. $500

   5. $1000