1. If you are long a call, what right or obligation do you have?

A. The right to buy

B. The right to sell

C. The obligation to buy

D. The obligation to sell

2. What right or obligation does a put writer have?

A. The right to sell

B. The right to buy

C. The obligation to buy

D. The obligation to sell

3. With a 75 Put price of $4.25 and a stock price of $77, what is the time value of the 75 Put?

A. 1

B. 1.50

C. 3.25

D. 4.25

4. With a 75 Call price of $4.25 and a stock price of $77, what is the time value of the 75 Call?

A. 1

B. 1.50

C. 3.25

D. 2.25

5. With a 100 Call price of $1.40 and a stock price of $86.10, what is the intrinsic value of the 100 Call?

A. 0

B. 2.40

C. 3.90

D. None of the above

6. With a 35 Call price of $2.40 and a stock price of $36.10, what is the intrinsic value of a 35 Call?

A. 1.10

B. 2.40

C. 3.90

D. None of the above

7. What information is missing from the following option order?Buy 5 IBM June Calls at 5.70

A. The underlying stock

B. The type of option (call or put)

C. The expiration date

D. The strike price

E. The option price

8. When an option's price consists of intrinsic value only it is called

A. The put call ratio

B. Arbitrage

C. Parity

D. Both A and C

9.Parity is when

A. The price consists of intrinsic value and time value

B. The price consists of intrinsic value only

C. When the price consists of time value only

D. Both A and C