1. For an option, the exercise price is also called the

a. striking price.

b. booking price.

c. market value.

d. spot price.

2. The purchaser of a call option feels that the stock will

a. pay a large dividend.

b. maintain a level price.

c. have a drop in price.

d. have a price rise.

3. A put option does not specify the

a. number of shares that can be sold.

b. exercise price.

c. premium on the put option.

d. company whose shares can be sold.

4. The purchaser of a put option expects the stock price to

a. fall.

b. double.

c. remain level.

5. As compensation for the risk of an option writer, the option purchaser will pay

a. a commission.

b. a cash dividend.

c. an intrinsic value.

d. a premium.