Session II Assessment

Question 1 of 15

6

This is an example of the naming convention of an option. Identify the standards of an option by dragging and dropping the correct label.

Drag an answer into the correct orange point.

Underlying Security

Technology

Company

Purchase Date

Expiration Date

stock price

strike price

option type

option market

premium

commission

Explanation

Question 2 of 15

6

Select the option that lists the differences between stocks and options.

Select one of the following:

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.

Explanation

Question 3 of 15

6

Label the advantages and disadvantages of options.

Drag an answer into the correct orange point.

Leverage

Choices

Expiration

Not legally enforceable.

Fixed Risk

Unlimited Risk

Limited reward.

Unlimited reward.

Explanation

Question 4 of 15

6

The goal of any option strategy is to buy high and sell low.

Select one of the following:

True
False

Explanation

Question 5 of 15

6

When does a call buyer benefit?

Select one of the following:

When the underlying security goes down.
When the market is negative.
When the market is positive.
When the underlying security price rises

Explanation

Question 6 of 15

6

When does a put option buyer benefit?

Select one of the following:

When the underlying security's price rises.
When the stock market rises.
When the stock market declines.
When the underlying security's price declines.

Explanation

Question 7 of 15

6

A put seller benefits when the stock price trades ❌ the option's strike price.

Drag and drop to complete the text.

above

below

near

far from

Explanation

Question 8 of 15

6

The ❌ option becomes more valuable when the stock price ❌ higher above the call's strike price.

Drag and drop to complete the text.

increases

decreases

call

put

Explanation

Question 9 of 15

6

The ❌ option becomes ❌ valuable when the stock price increases higher above the ❌ price.

Drag and drop to complete the text.

call

put

more

less

strike

stock

Explanation

Question 10 of 15

6

An option's ❌ price indicates the purchase/sale price of ❌ shares of stock (per option contract) in the event that the option buyer ❌s, or the option expires ❌.

Drag and drop to complete the text.

strike

stock

100

1

exercise

sells

in-the-money

out-the-money

Explanation

Question 11 of 15

6

It is said that time decay is an option ❌ best friend and option ❌ worst enemy.

Drag and drop to complete the text.

seller's

market

buyer's

chain's

Explanation

Question 12 of 15

10

Click on each orange point and write the correct answer.

Please fill in the blanks for each section marked. Do not include the dollar sign. Enter in the following format: 0.00

Explanation

Question 13 of 15

10

Fill the blank spaces to complete the text.

On an option chain, the calls are usually on the and the puts are on the .

Explanation

Question 14 of 15

8

❌ options are always going to be more conservative, but also more ❌ since they will always have some real value priced into the option. ❌ options will always be cheaper but more ❌ since the entire price of the option is based on time value.

Drag and drop to complete the text.

ITM

OTM

aggressive

expensive

Explanation

Question 15 of 15

6

In The Money: Any option with ❌ (real value)
At The Money OR Near The Money: An option with a strike price that is ❌ to the current stock price
Out The Money: An option that only has ❌ (time value)

Drag and drop to complete the text.

intrinsic value

no value

closest

farthest

extrinsic value

market value

	Created by ELITE IIVII about 6 years ago

Options Series Session II Assessment

Session II Assessment

Question 1 of 15

This is an example of the naming convention of an option. Identify the standards of an option by dragging and dropping the correct label.

Drag an answer into the correct orange point.

Explanation

Question 2 of 15

Select the option that lists the differences between stocks and options.

Select one of the following:

Explanation

Question 3 of 15

Label the advantages and disadvantages of options.

Drag an answer into the correct orange point.

Explanation

Question 4 of 15

The goal of any option strategy is to buy high and sell low.

Select one of the following:

Explanation

Question 5 of 15

When does a call buyer benefit?

Select one of the following:

Explanation

Question 6 of 15

When does a put option buyer benefit?

Select one of the following:

Explanation

Question 7 of 15

A put seller benefits when the stock price trades ❌ the option's strike price.

Drag and drop to complete the text.

Explanation

Question 8 of 15

The ❌ option becomes more valuable when the stock price ❌ higher above the call's strike price.

Drag and drop to complete the text.

Explanation

Question 9 of 15

The ❌ option becomes ❌ valuable when the stock price increases higher above the ❌ price.

Drag and drop to complete the text.

Explanation

Question 10 of 15

An option's ❌ price indicates the purchase/sale price of ❌ shares of stock (per option contract) in the event that the option buyer ❌s, or the option expires ❌.

Drag and drop to complete the text.

Explanation

Question 11 of 15

It is said that time decay is an option ❌ best friend and option ❌ worst enemy.

Drag and drop to complete the text.

Explanation

Question 12 of 15

Click on each orange point and write the correct answer.

Please fill in the blanks for each section marked. Do not include the dollar sign. Enter in the following format: 0.00

Explanation

Question 13 of 15

Fill the blank spaces to complete the text.

On an option chain, the calls are usually on the and the puts are on the .

Explanation

Question 14 of 15

❌ options are always going to be more conservative, but also more ❌ since they will always have some real value priced into the option. ❌ options will always be cheaper but more ❌ since the entire price of the option is based on time value.

Drag and drop to complete the text.

Explanation

Question 15 of 15

In The Money: Any option with ❌ (real value) At The Money OR Near The Money: An option with a strike price that is ❌ to the current stock price Out The Money: An option that only has ❌ (time value)

Drag and drop to complete the text.

Explanation

In The Money: Any option with ❌ (real value)
At The Money OR Near The Money: An option with a strike price that is ❌ to the current stock price
Out The Money: An option that only has ❌ (time value)