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1. which of following are true? a. Call option gives the owner the right to sell a certain price b. Call option gives the owner
1. which of following are true?
a. Call option gives the owner the right to sell a certain price
b. Call option gives the owner the right to buy at a certain price
c. Selling put options is illegal
d. A pur option is never out of money
2. Expiration the time premium of an option
a. Is 0 for calls and puts
b. Is always negative
c. Is zero for calls but not for puts
d. Depends on the difference between strike price and stock price
3. The Black Scholes module suggest that assuming I'll as equal if the time two expiration is shorter:
a. The value of a put option is lower
b. The value of a call option is higher
c. Time is not a component of the Blackscholes model
d. The values of calls are higher but the values of puts are lower
4. If you are longer futures contract on oil
a. You do not have to do anything at the contract date if the oil price is unfavorable
b. you profit and laws will likely be much greater than if you were short at the same contract
c. You benefit when the price of oil rises above the contract price break even when it falls below the contract price
d. Do you benefit when the prices of oil rises above the contract price and lose when it falls below the contract price
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