Options Trading for Beginners Test

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

True

False

Sometimes

Correct! Wrong!

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

0 and unlimited

0 and limited

Limited and unlimited

None of the options are correct

Correct! Wrong!

Choosing the strike price ________.

As of the expiration

At the time the deal was signed

Never been accepted

Any moment throughout the term of the agreement

Correct! Wrong!

The contract for an Out of Money Put Option is

One where the strike price is higher than the spot price

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

A striking price that is higher than the spot price

None of the options are correct

Correct! Wrong!

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 _______.

32

22

14

38

Correct! Wrong!

______ is another name for a Put option.

Option Keeper

One who is diminutive

Someone who believes the market will rise

Option holder

Correct! Wrong!

Define a Put Option

The right to purchase the underlying asset at maturity or earlier

Having the ability to vote in company board meetings

The right to sell the underlying asset at maturity or earlier

All options are correct

Correct! Wrong!

Options Trading for Beginners Test

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

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

Choosing the strike price ________.

The contract for an Out of Money Put Option 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 _______.

______ is another name for a Put option.

Define a Put Option

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