Options Market
Question 1
Covered call is when owner of the stock ___
sell a call option
buy a call option
sell a put option
buy a put option
Question 2
If you anticipate the Stock Price to fall, what should you do?
Buy a put option
Sell a put option
Buy a call option
Sell a call option
Question 3
Which of the following option exercises would be In the Money (ITM)?
Call option: Strike price > Stock price
Put option: Stock price > Strike price
Call option: Stock price > Strike price
Put option: Strike price > Stock price
Question 4
An investor purchases 100 shares of XYZ at $60 each. He then writes a call option of XYZ at a strike price of $65 with a $3 premium. What is the investor’s maximum potential loss?
$5,700
$6,300
$6,500
$6,800
Question 5
Payoffs at expiration is the dollar amount the buyer receives at expiration while profits at expiration is the payoff minus cost of setting up strategy (e.g. premiums).
Question 6
Which of the following are false?
In the Money is when exercising the option will generate in positive cashflow.
In the Money is when exercising the option will generate in negative cashflow.
Out of the Money is when exercising the option will generate in positive cashflow.
Out of the Money is when exercising the option will generate in negative cashflow.
Question 7
Would you contact @naibai as your financial consultant?
yes!
definitely!
of course!
i will contact her now!