Suppose That You Purchased a Call Option on the S&P

Multiple Choice

Suppose that you purchased a call option on the S&P 100 Index. The option has an exercise price of 1,680, and the index is now at 1,720. What will happen when you exercise the option?

A) You will have to pay $1,680.
B) You will receive $1,720.
C) You will receive $1,680.
D) You will receive $4,000.
E) You will have to pay $4,000.