Finance

The value of a put increases as the price of the underlying security rises.

The value of a put increases as the price of the underlying security rises.

The value of a put increases as the price of the underlying security rises.

▸ true

▸ false

alidinak   46   1 Reply

Marth6377

The value of a call increases as the price of the underlying security rises.

The value of a call increases as the price of the underlying security rises.

The value of a call increases as the price of the underlying security rises.

▸ true

▸ false

schweet   52   1 Reply

jarste123

The price behavior of the underlying security is the primary determinant of the price of an option.

The price behavior of the underlying security is the primary determinant of the price of an option.

The price behavior of the underlying security is the primary determinant of the price of an option.

▸ true

▸ false

scigeekalic   54   1 Reply

djbo89

The option premium is the price of the option.

The option premium is the price of the option.

The option premium is the price of the option.

▸ true

▸ false

susu   38   1 Reply

Moh1995abdel

The buyer of a put expects the price of the underlying stock to rise.

The buyer of a put expects the price of the underlying stock to rise.

The buyer of a put expects the price of the underlying stock to rise.

▸ true

▸ false

britt138   51   1 Reply

ricyoung

The buyer of a put and the writer of a call both profit if the price of the stock falls.

The buyer of a put and the writer of a call both profit if the price of the stock falls.

The buyer of a put and the writer of a call both profit if the price of the stock falls.

▸ true

▸ false

MasterPriapis   62   1 Reply

melryandion

Options premiums tend to be smaller as the time to expiration increases.

Options premiums tend to be smaller as the time to expiration increases.

Options premiums tend to be smaller as the time to expiration increases.

▸ true

▸ false

mktrujillo   47   1 Reply

ttoe81

Investors buy options at the bid price and sell at the ask price.

Investors buy options at the bid price and sell at the ask price.

Investors buy options at the bid price and sell at the ask price.

▸ true

▸ false

waterman7833   52   1 Reply

Hello32hello3

A put option has a strike price of $32. The current price of the stock is $34. The put option is ...

A put option has a strike price of $32. The current price of the stock is $34. The put option is ...

A put option has a strike price of $32.  The current price of the stock is $34.  The put option is said to be "in-the-money."

▸ true

▸ false

rafiki121   62   1 Reply

Hope89

Which of the following variables are part of the Black-Scholes option pricing model?I.the market ...

Which of the following variables are part of the Black-Scholes option pricing model?I.the market ...

[html]Which of the following variables are part of the Black-Scholes option pricing model?

I.

NinjaRick   63   1 Reply

thomas1993

Which of the following represent in-the-money options?I.a call when the market price of the ...

Which of the following represent in-the-money options?I.a call when the market price of the ...

[html]Which of the following represent in-the-money options?

I.

lbsusugar   50   1 Reply

Boba155

Which of the following affect the value of puts and calls written on shares of common stock?I.price ...

Which of the following affect the value of puts and calls written on shares of common stock?I.price ...

[html]Which of the following affect the value of puts and calls written on shares of common stock?

dietdrpepper   51   1 Reply

lewmyr

What is the time value of a put with a strike price of $30 when the option price is $500 and the ...

What is the time value of a put with a strike price of $30 when the option price is $500 and the ...

What is the time value of a put with a strike price of $30 when the option price is $500 and the underlying common stock sells for $27?

▸ $100

▸ $200

▸ $300

▸ $400

abdallaex   48   1 Reply

pipi123

What is the intrinsic value of a call with a strike price of $40 if the market price of the ...

What is the intrinsic value of a call with a strike price of $40 if the market price of the ...

What is the intrinsic value of a call with a strike price of $40 if the market price of the underlying stock is $44?  The call's ask price $540.

▸ -$400

▸ -$140

▸ $940

▸ $400

danny2012   53   1 Reply

Kmc14

What is the fundamental value of a put contract with a strike price of $25 when the option price is ...

What is the fundamental value of a put contract with a strike price of $25 when the option price is ...

What is the fundamental value of a put contract with a strike price of $25 when the option price is $150 and the underlying common stock sells for $26?

▸ $150

▸ $100

▸ $0.00

▸ -$100

pjw1979   49   1 Reply

jamiecro

The most important factor affecting the market price of a put or call is the

The most important factor affecting the market price of a put or call is the

The most important factor affecting the market price of a put or call is the

▸ market interest rate.

▸ expiration date.

▸ price behavior of the underlying common stock.

▸ price behavior of the corresponding warrant.

dalvirb   40   1 Reply

JRAD814

Rex bought a put on Alpha stock with a strike price of $35 when the market price of Alpha stock was ...

Rex bought a put on Alpha stock with a strike price of $35 when the market price of Alpha stock was ...

[html]Rex bought a put on Alpha stock with a strike price of $35 when the market price of Alpha stock was $33 a share. Alpha is currently selling at $34 a share. Which of the following statements are true given this information?

Anthonyling   59   1 Reply

pipi123

NZMA stock is currently selling for $128. Which of the following options is "in-the-money"?

NZMA stock is currently selling for $128. Which of the following options is "in-the-money"?

NZMA stock is currently selling for $128.  Which of the following options is "in-the-money"?

▸ March 130 call

▸ February 125 call

▸ March 125 put

▸ February 100 put

merrisara   34   1 Reply

brassgod

Nowel Inc. stock is currently priced at $42. The present value of the strike price of a call option ...

Nowel Inc. stock is currently priced at $42. The present value of the strike price of a call option ...

[html]Nowel Inc. stock is currently priced at $42.  The present value of the strike price of a call option on this stock is $44. N(d1), as calculated by the Black Scholes option pricing model is .6541; N(d2) is .3722.  The value of this option as cal

salonijainnn   37   1 Reply

Dratini

Lew paid $300 to purchase a call on Delta stock with a strike price of $25. What does the market ...

Lew paid $300 to purchase a call on Delta stock with a strike price of $25. What does the market ...

[html]Lew paid $300 to purchase a call on Delta stock with a strike price of $25. What does the market price of Delta have to be for Lew to break-even on his option investment? Ignore transaction costs and taxes.

▸ $22

▸ $25

▸ $28

▸ cannot be det

becky28   33   1 Reply

pipi123

Jason purchased a six-month put on ABC stock at a cost of $100. The strike price was $15. At what ...

Jason purchased a six-month put on ABC stock at a cost of $100. The strike price was $15. At what ...

[html]Jason purchased a six-month put on ABC stock at a cost of $100. The strike price was $15. At what market price does Jason just break-even on this investment? Ignore transaction costs and taxes.

▸ $15

▸ $16

▸ $14

▸ cannot be determined from

wallyboy   25   1 Reply

fujioki

Jamie wrote a nine-month put on Beta stock. The strike price was $25 and the market price of Beta ...

Jamie wrote a nine-month put on Beta stock. The strike price was $25 and the market price of Beta ...

[html]Jamie wrote a nine-month put on Beta stock. The strike price was $25 and the market price of Beta stock at the time the option was written was $24. The total price of the option contract was $150. At what market price will Jamie just break-even

nursecupcake   32   1 Reply

Ranim_Saleem

In late November, Karen bought FIB February puts with a strike price of $25. The ask price of the ...

In late November, Karen bought FIB February puts with a strike price of $25. The ask price of the ...

In late November, Karen bought FIB February puts with a strike price of $25.  The ask price of the put was $281.  The current price of FIB shares is $28.40.  The intrinsic value of the put is

▸ $340.

▸ $(340).

▸ $(621).

▸ $0.00.

apple321   30   1 Reply

rion20000

Grant purchased one call on XYZ stock at an exercise price of $25. The market price of XYZ stock ...

Grant purchased one call on XYZ stock at an exercise price of $25. The market price of XYZ stock ...

[html]Grant purchased one call on XYZ stock at an exercise price of $25. The market price of XYZ stock when Grant purchased the call was $24 a share. XYZ is currently priced at $30 a share. Grant paid $120 to buy the call. How much profit will Grant

xiaily   179   1 Reply

Redhawt75

Andrea wrote a three-month call on Echo stock. The option cost $200 and the strike price was $10. ...

Andrea wrote a three-month call on Echo stock. The option cost $200 and the strike price was $10. ...

[html]Andrea wrote a three-month call on Echo stock. The option cost $200 and the strike price was $10. What does the market price of Echo have to be for Andrea to break-even on this investment if the option is exercised? Ignore transaction construed

deroth   48   1 Reply

studytime

A put has fundamental value as long as

A put has fundamental value as long as

[html]A put has fundamental value as long as

▸ the market price of the underlying financial asset has a positive value.

▸ the market price of the underlying financial asset is less than the strike price.

▸ the strike price of the put is greater th

choco1433   24   1 Reply

rector

Which one of the following options is more expensive? Show all calculations.(a)A six-month put that ...

Which one of the following options is more expensive? Show all calculations.(a)A six-month put that ...

[html]Which one of the following options is more expensive? Show all calculations.
(a)

lilricemunch   42   1 Reply

WoodyNRex

The party that accepts the legal obligation to stand behind the option is the buyer of the contract.

The party that accepts the legal obligation to stand behind the option is the buyer of the contract.

The party that accepts the legal obligation to stand behind the option is the buyer of the contract.

▸ true

▸ false

hcraik2   38   1 Reply

itsbreck

The majority of today's options are stock options traded primarily on the CBOE and on AMEX.

The majority of today's options are stock options traded primarily on the CBOE and on AMEX.

The majority of today's options are stock options traded primarily on the CBOE and on AMEX.

▸ true

▸ false

tara.harris.9   34   1 Reply

kpot15

Standardized options expire on the last business day of the expiration month.

Standardized options expire on the last business day of the expiration month.

Standardized options expire on the last business day of the expiration month.

▸ true

▸ false

onlineerica   20   1 Reply

Moh1995abdel

Listed options are difficult to sell in the secondary market.

Listed options are difficult to sell in the secondary market.

Listed options are difficult to sell in the secondary market.

▸ true

▸ false

swimchk13   25   1 Reply

jasm

European options can only be exercised on the expiration date but can be sold to another investor on ...

European options can only be exercised on the expiration date but can be sold to another investor on ...

European options can only be exercised on the expiration date but can be sold to another investor on any trading day.

▸ true

▸ false

mrb0714   31   1 Reply

wardasid

An option's strike price is the stock price at which the option holder breaks even.

An option's strike price is the stock price at which the option holder breaks even.

An option's strike price is the stock price at which the option holder breaks even.

▸ true

▸ false

nitanikollaj   64   1 Reply

Saharak

American style options can only be exercised on their expiration dates.

American style options can only be exercised on their expiration dates.

American style options can only be exercised on their expiration dates.

▸ true

▸ false

daogrady   33   1 Reply

jtarinay

Which one of the following was the first listed exchange for stock options in the United States?

Which one of the following was the first listed exchange for stock options in the United States?

Which one of the following was the first listed exchange for stock options in the United States?

▸ Stock Index Board

▸ Philadelphia Board of Trade

▸ New York Stock Exchange

▸ Chicago Board Options Exchange

Krazil   31   1 Reply

elbrundo

The writer of a put option hopes that the price of the underlying stock will rise because

The writer of a put option hopes that the price of the underlying stock will rise because

[html]The writer of a put option hopes that the price of the underlying stock will rise because

▸ the option is more likely to be exercised.

▸ the option is less likely to be exercised.

▸ the buyer of the put will have to purchase the stock at a h

gisellerol   44   1 Reply

lingo94

The two provisions which investors should carefully consider when evaluating stock options are the

The two provisions which investors should carefully consider when evaluating stock options are the

[html]The two provisions which investors should carefully consider when evaluating stock options are the

▸ strike price and the exchange ratio.

▸ time until expiration and the strike price.

▸ leverage ratio and the time to maturity.

▸ premium and

Coolguy80   35   1 Reply

strawberry8971

The strike price of a put option is the price

The strike price of a put option is the price

[html]The strike price of a put option is the price

▸ an investor must pay for the options contract.

▸ of the underlying stock at the time that the options contract is purchased.

▸ at which the underlying stock can be sold.

▸ at which the underly

daogrady   27   1 Reply

duankong-fei

The option premium is

The option premium is

[html]The option premium is

▸ the market price of the option.

▸ the amount by which the stock price is expected to move before the option expires.

▸ the fee charged by the options exchanges for executing transactions.

▸ the difference between the

Lola1   43   1 Reply

amie

The buyer of a listed American option has which of the following rights?I.the right to change the ...

The buyer of a listed American option has which of the following rights?I.the right to change the ...

[html]The buyer of a listed American option has which of the following rights?

I.

remmylp   29   1 Reply

manuella14