option1 - D) acquires the opportunity to sell shares at a...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Answers are on the next page 1. An American put option gives its holder the right to __________. A) buy the underlying asset at the exercise price on or before the expiration date B) buy the underlying asset at the exercise price only at the expiration date C) sell the underlying asset at the exercise price on or before the expiration date D) sell the underlying asset at the exercise price only at the expiration date 2. The writer of a put option ________________. A) agrees to sell shares at a set price B) agrees to buy shares at a set price C) acquires the opportunity to buy shares at a set price
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: D) acquires the opportunity to sell shares at a set price 3. The most negative payoff that could be occur for the writer of a put option is ______________. A) zero B) equal to the exercise price of the put C) equal to the price of the underlying stock on the option's expiration date D) unlimited 4, Call options on IBM stock options are ___________. A) created by investors B) issued by IBM corporation C) issued by the Federal Reserve D) all of the above 1 Answer: C 2 Answer: B 3 Answer: B 4 Answer: A...
View Full Document

Page1 / 2

option1 - D) acquires the opportunity to sell shares at a...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online