投資學作業ch16

投資學作業ch16

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Chapter 16 Options Markets 1. An American call option gives the buyer 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 h 2. A put option on Snapple Beverage has an exercise price of $30. The current stock price of Snapple Beverage is $24.25. The put option is __________. A. at the money B. in the money C. out of the money D. none of the above h 3. You buy a call option on Merritt Corp. with an exercise price of $50 and an expiration date in July and write a call option on Merritt Corp. with an exercise price of $55 with an expiration date in July. This is called a _________. A. horizontal spread B. long straddle C. short straddle D. vertical spread h 4. A call option on Brocklehurst Corp. has an exercise price of $30. The current stock price of Brocklehurst Corp. is $32. The call option is __________. A. at the money B. in the money
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D. none of the above h 5. You invest in the stock of Rayleigh Corp. and write a call option on Rayleigh Corp. This strategy is called a __________. A. covered call B. long straddle C. naked call D. vertical spread h 6. You buy a call option on Summit Corp. with an exercise price of $40 and an expiration date in September and write a call option on Summit Corp. with an exercise price of $40 and an expiration date in October. This strategy is called a __________. A. horizontal spread B. long straddle C. short straddle D. vertical spread h 7. A European call option gives the buyer 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 h 8. You invest in the stock of Valleyview Corp. and purchase a put option on Valleyview Corp. This strategy is called a __________.
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This note was uploaded on 08/06/2009 for the course BUSINESS 4444 taught by Professor Dr.dale during the Spring '09 term at University of Texas at Dallas, Richardson.

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投資學作業ch16

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