Question
36._____A put option is in the money when its a. strike price is higher than the market price of the underlying security. b. strike price
36._____A put option is in the money when its
a. strike price is higher than the market price of the underlying security.
b. strike price is lower than the market price of the underlying security.
c. holder has made money on the options trade.
d. seller has made money on the options trade.
e. none of the above.
CHAPTER 15 Futures Markets and Securities
37.______The key difference between a forward market and a futures market involves
a. timing of delivery.
b. commodities that can be traded as futures or forwards.
c. standardization of futures contracts.
d. standardization of forward contracts.
e. the prices at which delivery can be made and taken.
38.______Key difference(s) between option contracts and futures contracts is
a. being long an option involves an obligation while being long a future involves a choice.
b. being long an option involves a choice while being long a future involves an obligation.
c. delivery must be made or taken on a specific date with a future but an option can be exercised any time before a specified date.
d. delivery can be made any time before a specific date with a future but an option must be exercised on a specific date.
e. more than one, but not all of the above.
39._____Who is obligated in a futures contact?
a. the long party.
b. the short party.
c. neither party.
d. both parties.
40.______Who is obligated in an options contract?
a. the long party.
b. the short party.
c. neither party.
d. both parties.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started