1. Explain the basic characteristics of options markets and individual options contracts.

2. Analyze how investors can make (or lose) money from put and call options by creating an exposure and hedging it with those tools (quantify).

3. Identify techniques that can be used for hedging.

4. Describe the motivations of investors for utilizing options.

5. Design a use of options combination strategies, such as spreads and straddles, to address a hedging exposure you develop. Select the best solution you think would address the exposure.

6. Explain the function of futures contracts for speculators.