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!

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!

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!

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!

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!

______ is another name for a Put option.

Option Keeper

One who is diminutive

Someone who believes the market will rise

Option holder

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!

Options Trading for Beginners Test

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

The contract for an Out of Money Put Option is

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

Define a Put Option

Choosing the strike price ________.

______ is another name for a Put option.

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 _______.

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