BMC Equity Options Questions and Answers Rated A+

BMC Equity Options Questions and Answers Rated A+ a call option with a strike price of 100 is priced at 20. what is its intrinsic value if the underlying stock is trading at 150? 50 current trading price - strike price a trader wants to gain a profit by expecting a significant move in either direction of the underlying stock. which strategy best aligns to this goal? long strangle a trader wants to gain a profit from a large move on either the up or down side of the underlying asset of an ATM before expiry at the same strike price. which multi-leg strategy best aligns to this goal? long straddle a trader wants to hedge a long stock position from short term downside risk. which strategy best aligns to this goal? collar assignment a notice to call/put sellers to fulfill an obligation call or put buyers long the call or put contract call or put seller short the call or put contract click on the bloomberg terminal screen to examine the omon function. which option has the highest implied volatility? P1500 11/20/20 IVM column = implied volatility (highest) click on the bloomberg terminal screen to review four options on the OVME function. which one has the highest sensitive theoretical value? option 1 Option 1 has the highest delta value = highest sensitive theoretical value click on the bloomberg terminal screen to review four options on the OVME function. which option can only be exercised on the expiration date? option 3 European = only exercised on the expiration date examine the 1585 calls and the 1585 puts on the OMON function. if you were to buy these to take a long strangle position, what would your