Bob's DJIA Index Option Had a Strike Price of 125

Multiple Choice

Bob's DJIA Index option had a strike price of 125. When he exercised the option, the Dow was at 13,050.

A) Bob received $5,500 from the writer of the contract.
B) Bob paid $550 to the writer of the contract.
C) Bob received $550 from the writer of the contract.
D) Bob received $55,000 from the writer of the contract.