Chap020 - Chapter 20 - Options Markets: Introduction...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 20 - Options Markets: Introduction Chapter 20 Options Markets: Introduction Multiple Choice Questions 1. The price that the buyer of a call option pays to acquire the option is called the A. strike price B. exercise price C. execution price D. acquisition price E. premium The price that the buyer of a call option pays to acquire the option is called the premium. Difficulty: Easy 2. The price that the writer of a call option receives to sell the option is called the A. strike price B. exercise price C. execution price D. acquisition price E. premium The price that the writer of a call option receives to sell the option is called the premium. Difficulty: Easy 20-1
Background image of page 1

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

View Full DocumentRight Arrow Icon
Chapter 20 - Options Markets: Introduction 3. The price that the buyer of a put option pays to acquire the option is called the A. strike price B. exercise price C. execution price D. acquisition price E. premium The price that the buyer of a put option pays to acquire the option is called the premium. Difficulty: Easy 20-2
Background image of page 2
Chapter 20 - Options Markets: Introduction 4. The price that the writer of a put option receives to sell the option is called the A. premium B. exercise price C. execution price D. acquisition price E. strike price The price that the writer of a put option receives to sell the option is called the premium. Difficulty: Easy 5. The price that the buyer of a call option pays for the underlying asset if she executes her option is called the A. strike price B. exercise price C. execution price D. A or C E. A or B The price that the buyer of a call option pays for the underlying asset if she executes her option is strike price or exercise price. Difficulty: Easy 6. The price that the writer of a call option receives for the underlying asset if the buyer executes her option is called the A. strike price B. exercise price C. execution price D. A or B E. A or C The price that the writer of a call option receives for the underlying asset if the buyer executes her option is called the strike price or exercise price. 20-3
Background image of page 3

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

View Full DocumentRight Arrow Icon
Chapter 20 - Options Markets: Introduction Difficulty: Easy 20-4
Background image of page 4
Chapter 20 - Options Markets: Introduction 7. The price that the buyer of a put option receives for the underlying asset if she executes her option is called the A. strike price B. exercise price C. execution price D. A or C E. A or B The price that the buyer of a put option receives for the underlying asset if she executes her option is called the strike price or exercise price. Difficulty: Easy 8. The price that the writer of a put option receives for the underlying asset if the option is exercised is called the A. strike price B. exercise price C. execution price D. A or B E. none of the above The price that the writer of a put option receives for the underlying asset if the option is exercised depends on the market price at the time.
Background image of page 5

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

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/08/2011 for the course MBA ECON taught by Professor Hamza during the Spring '10 term at Prince Sultan University.

Page1 / 66

Chap020 - Chapter 20 - Options Markets: Introduction...

This preview shows document pages 1 - 6. Sign up to view the full document.

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