Question

Index options have a multiplier of 100, so a change of 1 point in the index equals a change of _____.

A) 10%
B) 0.01%
C) 1%
D) 100%

Answer 1

A change of 1 point in an index with a multiplier of 100 results in a 100% change in value.

Step-by-step explanation:

Index options have a multiplier of 100, meaning that a change of 1 point in the index corresponds to a change in value of 100 times that amount. Therefore, a change of 1 point in the index equals a change of 100%. This is because each point change would increase or decrease the value of the option by 100, and since we're considering a base of 100 (similar to calculating percentages where the base is 100), a move of 1 point equates to a 100% change.