You purchased one SPX put option with a strike of 1,400. You wrote one SPX put option with the same maturity date and a strike of 1,300. At maturity, what is your total payoff if the S&P 500 index is 1,320?
A. $8,000
B. $2,000
C. -$8,000
D. -$2,000
E. $4,000
Answer: A
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