Session II Assessment

Beschreibung

Options Series Session II Assessment
ELITE IIVII
Quiz von ELITE IIVII, aktualisiert more than 1 year ago
ELITE IIVII
Erstellt von ELITE IIVII vor etwa 6 Jahre
56
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Zusammenfassung der Ressource

Frage 1

Frage
This is an example of the naming convention of an option. Identify the standards of an option by dragging and dropping the correct label.
Antworten
  • Underlying Security
  • Technology
  • Company
  • Purchase Date
  • Expiration Date
  • stock price
  • strike price
  • option type
  • option market
  • premium
  • commission

Frage 2

Frage
Select the option that lists the differences between stocks and options.
Antworten
  • Options are securities, Options are derivatives, & Options trade on national SEC (Securities Exchange Commission)-regulated exchanges.
  • Option orders are transacted through market makers and retail participants with bids to buy and offers to sell and can be traded like any other security.
  • Options trade on national SEC (Securities Exchange Commission)-regulated exchanges, Options have an expiration date, and There is no limit to the number of options that can be traded on an underlying stock.
  • Options are derivatives, Options have an expiration date, and Options exist only as “book entry,” which means they are held electronically.

Frage 3

Frage
Label the advantages and disadvantages of options.
Antworten
  • Leverage
  • Choices
  • Expiration
  • Not legally enforceable.
  • Fixed Risk
  • Unlimited Risk
  • Limited reward.
  • Unlimited reward.

Frage 4

Frage
The goal of any option strategy is to buy high and sell low.
Antworten
  • True
  • False

Frage 5

Frage
When does a call buyer benefit?
Antworten
  • When the underlying security goes down.
  • When the market is negative.
  • When the market is positive.
  • When the underlying security price rises

Frage 6

Frage
When does a put option buyer benefit?
Antworten
  • When the underlying security's price rises.
  • When the stock market rises.
  • When the stock market declines.
  • When the underlying security's price declines.

Frage 7

Frage
A put seller benefits when the stock price trades [blank_start]above[blank_end] the option's strike price.
Antworten
  • above
  • below
  • near
  • far from

Frage 8

Frage
The [blank_start]call[blank_end] option becomes more valuable when the stock price [blank_start]increases[blank_end] higher above the call's strike price.
Antworten
  • increases
  • decreases
  • call
  • put

Frage 9

Frage
The [blank_start]call[blank_end] option becomes [blank_start]more[blank_end] valuable when the stock price increases higher above the [blank_start]strike[blank_end] price.
Antworten
  • call
  • put
  • more
  • less
  • strike
  • stock

Frage 10

Frage
An option's [blank_start]strike[blank_end] price indicates the purchase/sale price of [blank_start]100[blank_end] shares of stock (per option contract) in the event that the option buyer [blank_start]exercise[blank_end]s, or the option expires [blank_start]in-the-money[blank_end].
Antworten
  • strike
  • stock
  • 100
  • 1
  • exercise
  • sells
  • in-the-money
  • out-the-money

Frage 11

Frage
It is said that time decay is an option [blank_start]seller's[blank_end] best friend and option [blank_start]buyer's[blank_end] worst enemy.
Antworten
  • seller's
  • market
  • buyer's
  • chain's

Frage 12

Frage
Please fill in the blanks for each section marked. Do not include the dollar sign. Enter in the following format: 0.00
Antworten
  • 8.00
  • 2.50
  • 1.00
  • 2.75
  • 0.00
  • 5.25

Frage 13

Frage
On an option chain, the calls are usually on the [blank_start]left[blank_end] and the puts are on the [blank_start]right[blank_end].
Antworten
  • left
  • right

Frage 14

Frage
[blank_start]ITM[blank_end] options are always going to be more conservative, but also more [blank_start]expensive[blank_end] since they will always have some real value priced into the option. [blank_start]OTM[blank_end] options will always be cheaper but more [blank_start]aggressive[blank_end] since the entire price of the option is based on time value.
Antworten
  • ITM
  • OTM
  • aggressive
  • expensive

Frage 15

Frage
In The Money: Any option with [blank_start]intrinsic value[blank_end] (real value) At The Money OR Near The Money: An option with a strike price that is [blank_start]closest[blank_end] to the current stock price Out The Money: An option that only has [blank_start]extrinsic value[blank_end] (time value)
Antworten
  • intrinsic value
  • no value
  • closest
  • farthest
  • extrinsic value
  • market value
Zusammenfassung anzeigen Zusammenfassung ausblenden

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