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.