1.a trader buys a put option for $6 that gives the right to sell a share of stock for $100. The stock price is $98. in this situation the option is

a.ATM

b.OTM

c.ITM by $2

d. ITM by $4

e.ITM by $6

2.A person that takes the option position to sell the right to sell an underlying stock is a

a.call option buyer

b.call option seller

c.put option buyer

d. put option seller

e.none of the above

3.Which of the following option transactions do not need a margin deposit? A margin is needed when the transaction involves possible default

a.long call

b.short call

c.covered call

d. a and b

e.a and c

f.all fo the above

4. Which of the following is/are volatility trading strategies?

a.bull spread

b.covered call

c.straddle

d.butterfly spread

e. none of the above

f. a and b

g. a and c

h. c and d

5. which one of the following option is/are path-dependent?

a. binary option

b.asian option

c. lookback option

d. american option

e.a and b

f. a and c

g. b and c

h. b, c, and d

i. all of the above