1. A call option gives:

the writer of the option the right to buy the underlying stock

the holder of the option the right to buy the underlying stock

the holder of the option the right to sell the underlying stock

the writer of the option the right to sell the underlying stock

2. A put option gives:

the holder of the option the right to sell the underlying stock

the holder of the option the right to buy the underlying stock

the writer of the option the right to sell the underlying stock

the writer of the option the right to buy the underlying stock

3. If the strike price is 75 and the stock price at maturity is 71, then for a Put option:

the writer will exercise the option only if the cost of the option was more than 4

the holder will exercise the option

the holder will exercise the option only if the cost of the option was less than 4

the option will expire worthless

the writer will exercise the option

4. If the strike price is 50 and the stock price is 55, then a Put option is:

in the money

at the money

out of the money

5. If the strike price is 42 and the stock price is 40, then a Call option is:

in the money

out of the money

at the money