Session II Assessment

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

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

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

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 ❌.

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

❌ 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.

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)