Beyond Insights wrote a post · Sep 17 16:59

Session 1: Introduction to Options Quiz

Test your knowledge after our Options webinar series Session 1!
Let us know your answers in the comment section.

1. What is the right or obligation of the seller of a put option?

a. Right to buy the underlying asset.
b. Obligation to sell the underlying asset.
c. Right to sell the underlying asset
d. Obligation to buy the underlying asset.

2. American style options can be exercised any time on or before the expiration date.

a. True
b. False

3. If you are bullish on AAPL stock, which option strategy can you employ?

i. Buy Call ii. Buy Put iii. Sell Call iv. Sell Put

a. i and iv
b. ii and iii
c. i and iii
d. All of the above

4. If ABC company’s current stock price is $103 and its $100 strike price Call option is trading at $4.00 per contract. What is the time value of the said Call option?

a. $1.00
b. $2.00
c. $3.00
d. $4.00

5. Which of the following is NOT the reason we want to trade options?

a. For increased leverage in trading/ speculation
b. For hedging/ protection
c. To simplify trading strategies
d. For income generation

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