ch6_elearn_quiz - Quiz Intermediate Managerial Fin FIR 4440...

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Question 1 (1 point) Save An investor who writes call options against stock held in his or her portfolio is said to be selling ___________ options. a) put b) naked c) covered d) in-the money Question 2 (1 point) Save The value of an option depends on the stock's price, the risk-free rate, and the a) all of the answers b) variability of the stock price c) exercise price d) option's time to maturity Question 3 (1 point) Save An option which gives the holder the right to sell a stock at a specified price at some time in the future is called a(n) a) naked option b) covered option c) call option d) put option Question 4 (1 point) Save Suppose you believe that Du Pont's stock price is going to decline from its current level of $82.50 sometime during the next 5 months. For $510.25 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $83.00 per share. If you bought a 100-share contract for $510.25 and Du Pont's stock price actually dropped to $63.00, you would make
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ch6_elearn_quiz - Quiz Intermediate Managerial Fin FIR 4440...

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