Question
Call option When St=1300 at time T, the payoff at T for the call option holder is ____________ (Required) When St=1300 at time T, the
Call option
When St=1300 at time T, the payoff at T for the call option holder is ____________(Required)
When St=1300 at time T, the payoff at T for the call option writer is ____________(Required)
When St=1300 at time T, the net profits at T for the call option holder is ____________(Required)
When St=1300 at time T, the net profits at T for the call option writer is____________ (Required)
When St=1000 at time T, the payoff at T for the call option holder is ____________ (Required)
When St=1000 at time T, the payoff at T for the call option writer is ____________(Required)
When St=1000 at time T, the net profits at T for the call option holder is____________ (Required)
When St=1000 at time T, the net profits at T for the call option writer is ____________ (Required)
Put option
When St=1300 at time T, the payoff at T for the put option holder is ____________ (Required)
When St=1300 at time T, the payoff at T for the put option writer is ____________ (Required)
When St=1300 at time T, the net profits at T for the put option holder is ____________(Required)
When St=1300 at time T, the net profits at T for the put option writer is ____________(Required)
When St=400 at time T, the payoff at T for the put option holder is____________ (Required)
When St=400 at time T, the payoff at T for the put option writer is ____________ (Required)
When St=400 at time T, the net profits at T for the put option holder is ____________ (Required)
When St=400 at time T, the net profits at T for the put option writer is____________ (Required)
3.Which of the followings about trading options through the OTC market are true?
A multiple-choice question with several possible answers.(Required)
- Participants trade directly between two parties
- Options contracts traded through OTC are standardized
- Participants trade through the exchange
- Relatively Low liquidity
- Relatively High liquidity
- OTC is a decentralized market
- Relatively low counterparty risk
- Relatively high counterparty risk
- OTC is a centralized market
- Option contracts can be tailored to the needs of the traders
4. The Options Clearing Corporation (OCC) is the effective buyer and seller of options traded on exchange.
A question requiring a 'True/False' answer.(Required)
TrueFalse
5. Why options traded on exchange have lower counterparty risk?
A multiple-choice question with several possible answers.(Required)
- Marked to market
- Exchanges have the Options Clearing Corporation (OCC)
- Traded on margin
6. If the call option is in the money, this means the current stock price is higher than the strike price
A question requiring a 'True/False' answer.(Required)
TrueFalse
7. If the put option is in the money, this means the current stock price is higher than the strike price
A question requiring a 'True/False' answer.(Required)
TrueFalse
8. If the call option is out of the money, this means the current stock price is higher than the strike price
A question requiring a 'True/False' answer.(Required)
TrueFalse
9. If the put option is out of the money, this means the current stock price is higher than the strike price
A question requiring a 'True/False' answer.(Required)
TrueFalse
10. In the United States , most options took place on the NYSE and NASDAQ.
A question requiring a 'True/False' answer.(Required)
TrueFalse
11. In Japan, options are traded on Osaka securities exchange (Japan Exchange Group).
A question requiring a 'True/False' answer.(Required)
TrueFalse
12. Trading volumn indicates the total number of option cnntracts that are currently out there.
A question requiring a 'True/False' answer.(Required)
TrueFalse
No wrong answers please. Thanks for the help.
Call option A January 2022 (expiration date) call option on Apple stock with an exercise price (X) of 1050 was selling on December 2, 2021, for 50 (premium :P) The option expires on January 15, 2022 Current stock price of Apple So=900 2 Put option A January 2022 (expiration date) put option on Apple stock with an exercise price (X) of 900 was selling on December 2, 2021, for 300 (premium :P) The option expires on January 15, 2022 Current stock price of Apple Sn=700 Call option A January 2022 (expiration date) call option on Apple stock with an exercise price (X) of 1050 was selling on December 2, 2021, for 50 (premium :P) The option expires on January 15, 2022 Current stock price of Apple So=900 2 Put option A January 2022 (expiration date) put option on Apple stock with an exercise price (X) of 900 was selling on December 2, 2021, for 300 (premium :P) The option expires on January 15, 2022 Current stock price of Apple Sn=700Step by Step Solution
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