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1/63/21/2021Homework 3DueApr 5 at 11:59pmPoints10Questions10Time LimitNoneAllowed Attempts5Attempt HistoryAttemptTimeScoreLATESTAttempt 1 25 minutes10 out of 10Correct answers are hidden.Score for this attempt: 10out of 10Submitted Mar 21 at 3:11pmThis attempt took 25 minutes.Take the Quiz Again1 / 1 ptsQuestion 1The potential loss for a writer of a naked call option on a stock isincreasing when the stock price is decreasing. equal to the call premium. unlimited. If the buyer of the option elects to exercise the option and buy the stock at the exercise price, the seller of the option must go into the open market and buy the stock (in order to sell the stock to the buyer of the contract) at the current market price. Theoretically, the market price of a stock is unlimited; thus the writer's potential loss is unlimited.None of the options are correct. limited.
3/21/2021Homework 3: 2021SP-FIN-602-401: Options and Futures - Canvas - CSU2/61 / 1 ptsQuestion 2Buyers of put options anticipate the value of the underlying asset will __________,and sellers of call options anticipate the value of the underlying asset will________.increase; decrease increase; increase decrease; decrease The buyer of the put option hopes the price will fall in order to exercise the option and sell the stock at a price higher than the market price. Likewise, the