An investor who purchases a put option:
a. |
Has the obligation to buy a given stock at a specified price during a designated time period. |
|
b. |
Has the obligation to sell a given stock at a specified price during a designated time period. |
|
c. |
Has the right to buy a given stock at a specified price during a designated time period. |
|
d. |
Has the right to sell a given stock at a specified price during a designated time period. |
|
e. |
None of the above. |
Has the right to sell a given stock at a specified price during a designated time period. |
An investor who purchases a put option: a. Has the obligation to buy a given stock...
A futures put option provides its holder with the _______ to ___________. Multiple Choice obligation, deliver a futures contract at a specified price for a specified period of time obligation, purchase a futures contract for the delivery of options on a particular stock right, purchase a particular stock at some time in the future at a specified price right, deliver a futures contract and receive a specified price at a specific date in the future
If you want the right, but not the obligation, to buy a stock at a specified price you should: buy a call. sell a call. buy a put. sell a put. either sell a call or buy a put.
A put option gives the holder the right to buy something the right to sell something the obligation to buy something the obligation to sell something none of the above
questions 21-24 please 21. The writer of a put option A. Agrees to sell shares at a set price if the option holder desires B. Agrees to buy shares at a set price if the option holder desires C. Has the right to buy shares at a set price D. Has the right to sell shares at a set price E. None of the above 22. Advantages of exchange-traded options over Over-The-Counter options include all but which one of the...
27. The writer (seller) of a put option a. agrees to sell shares at a set price if the option holder desires b. agrees to buy shares at a set price if the option holder desires c. has the right to buy shares at a set price d. has the right to spl shares at a set price 17. A call option is said to be "in-the-money" if a. the stock price (i.e. the underlying asset) is greater than the...
Assume that the stock price is $56, call option price is $9, the put option price is $5, risk-free rate is 5%, the maturity of both options is 1 year , and the strike price of both options is 58. An investor can __the put option, ___the call option, ___the stock, and ______ to explore the arbitrage opportunity. A. sell, buy, short-sell, borrow B. buy, sell, buy, borrow C. sell, buy, short-sell, lend D. buy, sell, buy, lend
25. You buy a call option on Boeing Corp with an exercise price of $40 and an expiration date in September, and you write a call option on Boeing Corp with an exercise price of $40 and an expiration date in October. This strategy is called a A. Time spread B. Long straddle C. Short straddle D. Money spread E. None of the above 26. The maximum loss a buyer of a stock's call option can suffer is A. The...
questions 25-28 please 25. You buy a call option on Boeing Corp with an exercise price of $40 and an expiration date in September, and you write a call option on Boeing Corp with an exercise price of $40 and an expiration date in October. This strategy is called a A. Time spread B. Long straddle C. Short straddle D. Money spread E. None of the above 26. The maximum loss a buyer of a stock's call option can suffer...
The current price of a stock is $75. A put option with a strike price of $70 is purchased along with the stock. If the breakeven point for this hedge is at a stock price of $82, then the value of the put option at the time of purchase was (a) $5 (b) $7 (c) $12 (d) $14 (e) None of the above
An investor is bearish (bullish) on a particular stock and decided to buy a put (call) with a strike price of $25. Ignoring commissions, if the option was purchased for a price of $.85, what is the break-even point for the investor on the put and the call respectively?