INVESTMENTS CHAPTER 15
QUESTIONS WITH CORRECT ANSWERS
2024-2025
CallGOptionG-GcorrectGanswer-
TheGrightGtoGbuyGanGassetGatGaGspecifiedGexerciseGpriceGonGorGbeforeGaGspecifiedGexpirationGdate.
ExerciseG(strike)GpriceG-GcorrectGanswer-PriceGsetGforGcallingGanGassetGorGputtingGanGasset.
PutGOptionG-GcorrectGanswer-
TheGrightGtoGsellGanGassetGatGaGspecifiedGexerciseGpriceGonGorGbeforeGaGspecifiedGexpirationGdate.
PremiumG-GcorrectGanswer-TheGpriceGofGanGoptionG(buyersGofGoptionsGpayGpremiumGtoGsellers)
InGtheGmoneyG-GcorrectGanswer-AnGoptionGwhereGexerciseGwouldGbeGprofitable.
OutGofGtheGmoneyG-GcorrectGanswer-AnGoptionGwhereGtheGexerciseGwouldGnotGbeGprofitable.
AtGtheGmoneyG-GcorrectGanswer-AnGoptionGwhereGtheGexerciseGpriceGandGactualGpriceGareGequal.
ProtectiveGPutG-GcorrectGanswer-
AnGassetGcombinedGwithGaGputGoptionGthatGguaranteesGminimumGproceedsGequalGtoGtheGput'sGexerciseGp
rice.G(longGaGputGandGlongGtheGunderlyingGasset)
CoveredGCallG-GcorrectGanswer-
WritingGaGcallGonGanGassetGtogetherGwithGbuyingGtheGasset.G(shortGaGcallGandGlongGtheGunderlyingGasset)
StraddleG-GcorrectGanswer-
AGcombinationGofGaGcallGandGaGput,GeachGwithGtheGsameGexerciseGpriceGandGexpirationGdate.
QUESTIONS WITH CORRECT ANSWERS
2024-2025
CallGOptionG-GcorrectGanswer-
TheGrightGtoGbuyGanGassetGatGaGspecifiedGexerciseGpriceGonGorGbeforeGaGspecifiedGexpirationGdate.
ExerciseG(strike)GpriceG-GcorrectGanswer-PriceGsetGforGcallingGanGassetGorGputtingGanGasset.
PutGOptionG-GcorrectGanswer-
TheGrightGtoGsellGanGassetGatGaGspecifiedGexerciseGpriceGonGorGbeforeGaGspecifiedGexpirationGdate.
PremiumG-GcorrectGanswer-TheGpriceGofGanGoptionG(buyersGofGoptionsGpayGpremiumGtoGsellers)
InGtheGmoneyG-GcorrectGanswer-AnGoptionGwhereGexerciseGwouldGbeGprofitable.
OutGofGtheGmoneyG-GcorrectGanswer-AnGoptionGwhereGtheGexerciseGwouldGnotGbeGprofitable.
AtGtheGmoneyG-GcorrectGanswer-AnGoptionGwhereGtheGexerciseGpriceGandGactualGpriceGareGequal.
ProtectiveGPutG-GcorrectGanswer-
AnGassetGcombinedGwithGaGputGoptionGthatGguaranteesGminimumGproceedsGequalGtoGtheGput'sGexerciseGp
rice.G(longGaGputGandGlongGtheGunderlyingGasset)
CoveredGCallG-GcorrectGanswer-
WritingGaGcallGonGanGassetGtogetherGwithGbuyingGtheGasset.G(shortGaGcallGandGlongGtheGunderlyingGasset)
StraddleG-GcorrectGanswer-
AGcombinationGofGaGcallGandGaGput,GeachGwithGtheGsameGexerciseGpriceGandGexpirationGdate.