Essay on Class 6 Weekly Classes First Option C

Submitted By 123qwe321ewq
Words: 1378
Pages: 6
Open Document
BE332 - Class 6 - Options with Answers
Multiple Choice

1) Which of the following options will yield a profit to the purchaser?
a) An expired option that is "at the money."
b) A call option when the price of the underlying asset increases above the option's strike price by an amount greater than the premium paid for the option.
c) A put option when the price of the underlying increases above the option's strike price by an amount greater than the premium paid for the option.

2) Which statement is correct?
a) The seller of an option has limited liability and unlimited opportunity for gain.
b) The seller of an option has unlimited liability and unlimited opportunity for gain.
c) The seller of an option has unlimited liability and limited opportunity for gain.

3) If a call option is far 'out of the money' the value of the option will be
a) Greater than the value of a put option with the same exercise price
b) Equal to the value of a put option with the same exercise price
c) Zero
d) Less than the value of a put option with the same exercise price
e) None of the above is correct

4) A/An ______ gives the buyer the right, but not the obligation, to exercise the option at any time before the expiration or maturity date:
a) At-The-Money Option
b) American Option
c) Complex Option
d) Asian Option
e) European Option

5) Which one of the following transactions would be considered a protective strategy?
a) Sell a call against a stock you sold short
b) Sell a put on a stock you own
c) Buy a put on a stock you own
d) Buy a call on a stock you own
e) Sell a naked put

6) The price that the buyer of an option (call or put) pays to acquire the option is called the
a) strike price
b) exercise price
c) execution price
d) acquisition price
e) premium

7) The price that the buyer of a call option pays for the underlying asset if she executes her option is called the
a) strike price
b) exercise price
c) execution price
d) A or C
e) A or B

8) The price that the writer of a call option receives for the underlying asset if the buyer executes her option is called the
a) strike price
b) exercise price
c) execution price
d) A or B
e) A or C
9) The price that the buyer of a put option receives for the underlying asset if she executes her option is called the
a) strike price
b) exercise price
c) execution price
d) A or C
e) A or B

10) An American call option allows the buyer to
a) sell the underlying asset at the exercise price on or before the expiration date.
b) buy the underlying asset at the exercise price on or before the expiration date.
c) sell the option in the open market prior to expiration.
d) A and C
e) B and C

11) A European call option allows the buyer to
a) sell the underlying asset at the exercise price on the expiration date.
b) buy the underlying asset at the exercise price on or before the expiration date.
c) sell the option in the open market prior to expiration.
d) buy the underlying asset at the exercise price on the expiration date.
e) C and D

12) An American put option allows the holder to
a) buy the underlying asset at the strike price on or before the expiration date.
b) sell the underlying asset at the strike price on or before the expiration date.
c) potentially benefit from a stock price decrease with less risk than short selling the stock.
d) B and C
e) A and C

13) A European put option allows the holder to
a) buy the underlying asset at the strike price on or before the expiration date.
b) sell the underlying asset at the strike price on or before the expiration date.
c) potentially benefit from a stock price decrease with less risk than short selling the stock.
d) sell the underlying asset at the strike price on the expiration date.
e) C and D

14) The current market price of a share of AT&T stock is $50. If a call option on this stock has a strike price of $45, the call
a) is out of the money.
b) is in the money.
c) sells for a higher price than if the market price of AT&T stock is $40.
d) A and
Show More

Related Documents: Essay on Class 6 Weekly Classes First Option C

Sociology and Social Inequality Assigned Essay

and Social Inequalities around the globe. To achieve this goal, the course has been divided into the following three sections: A) theoretical discussion on Social Differences and Inequality, B) Social Institutions and Social Inequality, and C) forms and consequences of Social Differences and Inequality at individual, community, national, and international level. Given below is a brief description of each one of these sections. A) Theoretical Discussion In this section, we will present…

Words 1558 - Pages 7

Anth 101 03 Essay example

ANTH 101 (03/17086) INTRODUCTION TO BIOLOGICAL ANTHROPOLOGY Spring 2015 EVOLUTIONARY ANTHROPOLOGY COURSE INFORMATION Class meets: Time: Room: Tuesdays and Thursday 08:30 – 09:45 MH 428 Required Text: Our Origins, Clark Spenser Larsen 3rd edition. WW Norton (pub.) INSTRUCTOR INFORMATION: Instructor: Email: Office: Office Hours: Dr. Raffaella Commitante rcommitante@Fullerton.edu LH 502A (left off elevators then right) Monday 11:00 – 15:00 Tuesday/Wednesday/Thursday 10:00 – 11:00 (meeting outside…

Words 2567 - Pages 11

User Manual dox Essay

LOGIN: 1.1B # RIGHT COLUMN: 1.1C CENTER COLUMN: 1.1D LEFT COLUMN: 1.1E # QUICK LINKS: 1.2 # MESSAGES: 1.3 # CHAPTER 2: CLASSROOM TAB # CURRENT CLASSES: 2.1 # WEEKLY REQUIREMENTS: 2.2 # SYLLABUS: 2.2 A # DISCUSSIONS: 2.2 B # CLASS ACTIVITY: 2.2C MY ACTIVITY: 2.2D # INSTRUCTOR ANNOUNCEMENTS: 2.3 ACADEMIC RESOURCES: 2.4 CLASS ROSTER/LEARNING TEAMS: 2.5 # CHAPTER 3: LIBRARY TAB # CENTER FOR WRITING EXCELLENCE: 3.1 PLAGIARISM CHECKPOINT 3.1A WRITE POINT 3.1B UNIVERSITY LIBRARY/SEARCH:…

Words 3458 - Pages 14

Researcher: Cash Flow and Special Consideration Essay

Units of Credit Summary of Course Course Aims and Relationship to Other Courses Student Learning Outcomes LEARNING AND TEACHING ACTIVITIES ASSESSMENT 3 3 3 3 3 3 3 4 4 4 5 5 5 6 6 6 7 8 8 8 8 9 9 9 9 9 10 10 3.1 Approach to Learning and Teaching in the Course 4.1 Formal Requirements 4.2 Assessment Details 4.3 Late Submission 5 6 7 1 2 3 3.1 3.2 3.3 3.4 3.5 4 5 COURSE RESOURCES COURSE EVALUATION AND DEVELOPMENT COURSE SCHEDULE PROGRAM LEARNING GOALS AND OUTCOMES ACADEMIC HONESTY AND PLAGIARISM STUDENT…

Words 3476 - Pages 14

Soc 1001 Section 1

if you are not satisfied with your score. You must do this module for this course even if you’ve done it before for another course. This module will be worth 5% of your course grade. You will also be required to post a total of 5 out of 15 possible weekly entries of at least 2 full paragraphs in your assignment file on HuskyCT summarizing the article (indicated on the syllabus; please note: these articles can be found on HuskyCT in the Library Resources file) and using at least one sociological concept…

Words 2659 - Pages 11

Essay on Social/Behavioral Science Curriculum: Dona Ana Community College

semester. Reputable sources include but are not limited to cgpolitics.com ,cbsnews.com , yahoo.com ,AP wire service, The Washington Post, The Christian Science Monitor and utilization of search engines such as Google and Bing. Sign and submit at end of class for proper credit. STUDENT LEARNING OUTCOMES Students will be able to: -Identify, describe, and explain how human behaviors are influenced by social structures, institutions, and processes within the contexts of complex and diverse communities…

Words 3140 - Pages 13

Syllabus: Vermiform Appendix and Career Plan Essay

document) and my policies listed here in the syllabus. For class policies, please see the Policies link on the left side of the Materials page for the course on eCampus. Students will be held responsible for understanding and adhering to all policies contained within that link. **Please note that even though our course is online, we following the schedule in the policies for the “Associate Programs” “ Associate Programs: The electronic class week begins on Monday (Day 1) and ends on Sunday (Day 7)…

Words 4702 - Pages 19

Social Psychology Essay

of ways. You will learn how we (a) gather and critically evaluate research findings in the existing research literature, (b) integrate those Teaching findings into coherent and testable theories that explain objective Assistants: TBD observations, (c) design and conduct valid research that tests those theories and extends our knowledge, and (d) effectively communicate our theories and findings to a wide range of audiences. The result of the process is a more accurate and objective (rather than intuitive)…

Words 9483 - Pages 38

Essay on Federal Government of the United States and New York

| | |Course Description | POLS210 American Government I (3 hours) This is the first course in a two-course sequence in American Government. The course is designed to convey basic facts about the structure and functioning of American political system. The philosophical foundation of the U.S. Constitution is explored and the federalist…

Words 2565 - Pages 11

Case Study: General Anthropology

course has been approved to satisfy the Comprehensive Articulation Agreement general education core requirement in social/behavioral sciences. Instructional Approaches: Video Lectures, peer discussion, and individual writing assignments. Class Meeting Dates, time, location: Online delivery via Moodle: http://moodle.cravencc.edu/ Faculty: Dr. Cynthia Bellacero Office Location: H 102D Phone: 638-7328 Office Hours: by appointment Email: bellaceroc@cravencc.edu…

Words 1853 - Pages 8