1)

a)The seller of a CALL Option: (5 points)

x)Has the right to buy the underlying asset

xx)Has the obligation to buy the underlying asset if the buyer of the CALL Option wants

xxx)Has the right to sell the underlying asset

xxxx)Has the obligation to sell the underlying asset if the buyer of the CALL Option wants

b)The buyer of a PUT Option: (5 points)

x)Has the right to sell the underlying asset

xx)Has the obligation to buy the underlying asset if the seller of the Put Option wants.

xxx)Has the obligation to sell the underlying asset if the seller of the Put Option wants.

xxxx)Has the right to buy the underlying asset.

c)Put Options and Call Options (5 points)

x)Both can be bought and sold

xx)Only Call Options can be bought and sold

xxx)Only Put Options can be bought and sold

xxxx)It doesnt matter, to be bought and sold means the same