FIN 534 Week 6 Questions And Answers( Complete Solution)

• Question 1 4 out of 4 points An investor who writes standard call options against stock held in his or her portfolio is said to be selling what type of options? Answer Selected Answer: Covered Cor rect Answer: Covered • Question 2 4 out of 4 points Which of the following statements is most correct, holding other things constant, for XYZ Corporation's traded call options? Answer Selected Answer: The price of these call options is likely to rise if XYZ's stock price rises. Correct Answer: The price of these call options is likely to rise if XYZ's stock price rises. • Question 3 4 out of 4 points An option that gives the holder the right to sell a stock at a specified price at some future time is Answer Selected Answer: a put option. Correct Answer: a put option. • Question 4 4 out of 4 points Cazden Motors' stock is trading at $30 a share.