Options Series: Session 1 Assessment

A [blank_start]stock[blank_end] is a share in the ownership of a company that represents a claim on the company's [blank_start]assets[blank_end] and earnings. As you acquire more, your ownership stake in the company becomes [blank_start]greater[blank_end].

The [blank_start]stock market[blank_end] refers to the collection of markets and exchanges where the issuing and trading of equities (stocks of publicly held companies), bonds and other sorts of securities takes place, either through formal exchanges or over-the-counter markets.

What animal is used to describe an aggressive market?

What animal is used to describe a fearful market?

The three major U.S. indicies are the [blank_start]NASDAQ[blank_end] Composite, [blank_start]Dow[blank_end] Jones Industrial Average, and S&P [blank_start]500[blank_end].

The stock market is open from [blank_start]9:30[blank_end] a.m. to [blank_start]4:00[blank_end] p.m. EST.

An option is a [blank_start]contract[blank_end] giving the buyer the [blank_start]right[blank_end], but not the [blank_start]obligation[blank_end], to buy or sell an underlying asset (a stock or index) at a specific price on or before a certain date. An option is a derivative. That is, its value is derived from something else. In the case of a stock option, its value is based on the underlying stock (equity). An option is a security, just like a stock or bond, and constitutes a binding contract with strictly defined terms and properties.

A __________ option is an option to buy a stock at a specific price on or before a certain date. These options are similar to security deposits and are considered bullish.

_____ options are options to sell a stock at a specific price on or before a certain date. These options are like insurance policies and are considered bearish.

Call options give buyers the:

Put options give buyers the:

One option contract generally controls [blank_start]100[blank_end] shares of stock?