1.

In a bull put spread strategy, if you long September 1150 OKLI put with premium 25 points and short September 1200 OKLI put with premium 56 points, your maximum profit is ____________, maximum loss is ____________ and the break-even point at expiry is ___________.

a. 19 points; 31 points; 1181

b. 31 points; 19 points; 1181

c. 31 points; 19 points; 1169

d. 19 points; 31 points; 1169

2.

The effect of an increase in volatility on European put will lead to a/an _____________ in premium and the effect of a decrease in spot price on European call will lead to a/an ______________ in premium.

a. decrease; increase

b. increase; increase

c. decrease; decrease

d. increase; decrease

3.

Assume the OKLI is currently at 910. You write one March 910 OKLI call option at 20.5 points and you also write one March 910 OKLI put option at 18.0 points. Assume there are 45 days to expiry. What is the common name for this strategy?

a. Long Straddle

b. Long Strangle

c. Short Strangle

d. Short Straddle