13.9 Index option Example Consider a call option on an index with a strike price of 560 Suppose 1 contract is exercised When the index level is 580 What is the payoff? Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 13.9 Index Option Example • Consider a call option on an index with a strike price of 560 • Suppose 1 contract is exercised when the index level is 580 • What is the payoff?