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1- Call options _________________ in price as the option strikes go out-of-the-money, and put options _______________ in price as the option strikes...

1- Call options _________________ in price as the option strikes go out-of-the-money, and put options _______________ in price as the option strikes go out-of the money.

increase; decrease

increase; increase

decrease; decrease

decrease; increase

 


2- For all American-style options, extrinsic value _____________ as time until expiry ___________..

increases; decreases

increases; increases

decreases; decreases

decreases; increases


3- If you sell-to-open a call, you:

have the right but not the obligation to buy the stock at the strike price, regardless of the market price.

have the right but not the obligation to sell the stock at the strike price, regardless of the market price.

have the obligation to buy the stock at the strike price, regardless of the market price.

have the obligation to sell the stock at the strike price, regardless of the market price.

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