Options Trading for Beginners Test

Question 1

A call option with a strike price of Rs. 150 was purchased for Rs. 10 in premium, and the share price at expiration will be Rs. 172. The overall profit is _______.

Accepted Answer

22

Answer

32

Answer

14

Answer

38

Question 2

For an option buyer, the Intrinsic Value Minimum and Maximum are _______, respectively.

Accepted Answer

0 and unlimited

Answer

0 and limited

Answer

Limited and unlimited

Answer

None of the options are correct

Question 3

Choosing the strike price ________.

Accepted Answer

At the time the deal was signed

Answer

As of the expiration

Answer

Never been accepted

Answer

Any moment throughout the term of the agreement

Question 4

The intrinsic value of a call option cannot be negative from the sellers' or writers' standpoint.

Accepted Answer

True

Answer

False

Answer

Sometimes

Question 5

______ is another name for a Put option.

Accepted Answer

Option holder

Answer

Option Keeper

Answer

One who is diminutive

Answer

Someone who believes the market will rise

Question 6

Define a Put Option

Accepted Answer

The right to sell the underlying asset at maturity or earlier

Answer

The right to purchase the underlying asset at maturity or earlier

Answer

Having the ability to vote in company board meetings

Answer

All options are correct

Question 7

The contract for an Out of Money Put Option is

Accepted Answer

One where the strike price is higher than the spot price

Answer

One in which the strike price and the spot price are the someone in which the strike price and the spot price are the same

Answer

A striking price that is higher than the spot price

Answer

None of the options are correct

A call option with a strike price of Rs. 150 was purchased for Rs. 10 in premium, and the share price at expiration will be Rs. 172.The overall profit is _______.

A call option with a strike price of Rs. 150 was purchased for Rs. 10 in premium, and the share price at expiration will be Rs. 172.
The overall profit is _______.