Question 20

Which of the following strategies poses the greatest risk to an investor

• a long stock position
• a covered call position
• a short straddle
• a long straddle
• none of the above

Question 21

Which of the following have similar profit diagrams?

• $1,750 loss
• $1,250 loss
• $100 profit
• $500 profit
• none of the above

Question 45

The sale of a put option would be considered to be fully covered when:

• The account is long 100 shares of the underlying stock
• Cash equal to the exercise price is deposited in the account
• A put with a higher exercise price is long in the account
• The account is also short 100 shares of the underlying stock
• more than one of the above is correct