Zusammenfassung der Ressource
Frage 1
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This is an example of the naming convention of an option. Identify the standards of an option by dragging and dropping the correct label.
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Underlying Security
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Technology
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Company
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Purchase Date
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Expiration Date
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stock price
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strike price
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option type
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option market
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premium
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commission
Frage 2
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Select the option that lists the differences between stocks and options.
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Options are securities, Options are derivatives, & Options trade on national SEC (Securities Exchange Commission)-regulated exchanges.
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Option orders are transacted through market makers and retail participants with bids to buy and offers to sell and can be traded like any other security.
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Options trade on national SEC (Securities Exchange Commission)-regulated exchanges, Options have an expiration date, and There is no limit to the number of options that can be traded on an underlying stock.
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Options are derivatives, Options have an expiration date, and Options exist only as “book entry,” which means they are held electronically.
Frage 3
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Label the advantages and disadvantages of options.
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Leverage
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Choices
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Expiration
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Not legally enforceable.
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Fixed Risk
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Unlimited Risk
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Limited reward.
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Unlimited reward.
Frage 4
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The goal of any option strategy is to buy high and sell low.
Frage 5
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When does a call buyer benefit?
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When the underlying security goes down.
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When the market is negative.
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When the market is positive.
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When the underlying security price rises
Frage 6
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When does a put option buyer benefit?
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When the underlying security's price rises.
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When the stock market rises.
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When the stock market declines.
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When the underlying security's price declines.
Frage 7
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A put seller benefits when the stock price trades [blank_start]above[blank_end] the option's strike price.
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above
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below
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near
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far from
Frage 8
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The [blank_start]call[blank_end] option becomes more valuable when the stock price [blank_start]increases[blank_end] higher above the call's strike price.
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increases
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decreases
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call
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put
Frage 9
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The [blank_start]call[blank_end] option becomes [blank_start]more[blank_end] valuable when the stock price increases higher above the [blank_start]strike[blank_end] price.
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call
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put
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more
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less
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strike
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stock
Frage 10
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An option's [blank_start]strike[blank_end] price indicates the purchase/sale price of [blank_start]100[blank_end] shares of stock (per option contract) in the event that the option buyer [blank_start]exercise[blank_end]s, or the option expires [blank_start]in-the-money[blank_end].
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strike
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stock
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100
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1
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exercise
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sells
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in-the-money
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out-the-money
Frage 11
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It is said that time decay is an option [blank_start]seller's[blank_end] best friend and option [blank_start]buyer's[blank_end] worst enemy.
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seller's
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market
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buyer's
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chain's
Frage 12
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Please fill in the blanks for each section marked. Do not include the dollar sign. Enter in the following format: 0.00
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8.00
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2.50
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1.00
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2.75
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0.00
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5.25
Frage 13
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On an option chain, the calls are usually on the [blank_start]left[blank_end] and the puts are on the [blank_start]right[blank_end].
Frage 14
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[blank_start]ITM[blank_end] options are always going to be more conservative, but also more [blank_start]expensive[blank_end] since they will always have some real value priced into the option. [blank_start]OTM[blank_end] options will always be cheaper but more [blank_start]aggressive[blank_end] since the entire price of the option is based on time value.
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ITM
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OTM
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aggressive
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expensive
Frage 15
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In The Money: Any option with [blank_start]intrinsic value[blank_end] (real value)
At The Money OR Near The Money: An option with a strike price that is [blank_start]closest[blank_end] to the current stock price
Out The Money: An option that only has [blank_start]extrinsic value[blank_end] (time value)
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intrinsic value
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no value
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closest
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farthest
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extrinsic value
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market value