extra help - Chapter 20 Options Markets Introduction...

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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 Difficulty: Easy 3. The price that the buyer of a put option pays to acquire the option is called the Difficulty: Easy
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4. The price that the writer of a put option receives to sell the option is called the 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 Difficulty: Easy
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7. The price that the buyer of a put option receives for the underlying asset if she executes her option is called the 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 Difficulty: Easy
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