FINANCE 6100 SUU EXAM 3 TEST BANK
2026 AUTHENTIC QUESTIONS ANSWERS
FULL SOLUTION PACK GRADED A+
⩥ Define put
Answer: Sell at prearranged price by set date, price falls
⩥ Call - exercise (strike) price
Answer: Fixed price X
⩥ Call - expiration (maturity) date
Answer: Certain date T
⩥ Call - option premium
Answer: Price paid by buyer to seller to obtain right
⩥ Put - exercise (strike) price
Answer: Fixed price
⩥ Put - expiration (maturity) date
Answer: Certain date
, ⩥ Put - option premium
Answer: Price paid by buyer to sell to obtain right
⩥ Long the contract
Answer: Right to exercise option or not, pay premium to other person to
buy the right
⩥ Short the contract
Answer: You are paid to accept risk if other exercises and you trade asset
⩥ In the money
Answer: Today for positive gain
Positive intrinsic value
⩥ Out the money
Answer: Not today
0 intrinsic value
⩥ Option premium: Intrinsic value
Answer: Payoff sold right now
2026 AUTHENTIC QUESTIONS ANSWERS
FULL SOLUTION PACK GRADED A+
⩥ Define put
Answer: Sell at prearranged price by set date, price falls
⩥ Call - exercise (strike) price
Answer: Fixed price X
⩥ Call - expiration (maturity) date
Answer: Certain date T
⩥ Call - option premium
Answer: Price paid by buyer to seller to obtain right
⩥ Put - exercise (strike) price
Answer: Fixed price
⩥ Put - expiration (maturity) date
Answer: Certain date
, ⩥ Put - option premium
Answer: Price paid by buyer to sell to obtain right
⩥ Long the contract
Answer: Right to exercise option or not, pay premium to other person to
buy the right
⩥ Short the contract
Answer: You are paid to accept risk if other exercises and you trade asset
⩥ In the money
Answer: Today for positive gain
Positive intrinsic value
⩥ Out the money
Answer: Not today
0 intrinsic value
⩥ Option premium: Intrinsic value
Answer: Payoff sold right now