Question 25

How will the price of a call be affected by an increase in the time to maturity?

Question 25 options:

	No effect
	Decline
	Increase

Question 26 (2 points)

How will the price of a call be affected by an increase in the price of the underlying stock?

Question 26 options:

	No effect
	Decline
	Increase

Question 27 (2 points)

For this question, consider the following four possibilities: A, call buying; B, put buying; C, uncovered call writer; D, covered call writer. Select the letter for which the statement indicates either (1) a purpose of, (2) a reason for, or (3) a risk of this: Subject to the full risk of loss on their position in the underlying security.

Question 27 options:

	call buying
	put buying
	uncovered call writer
	covered call writer

Question 28 (2 points)

For this question, consider the following four possibilities: A, call buying; B, put buying; C, uncovered call writer; D, covered call writer. Select the letter for which the statement indicates either (1) a purpose of, (2) a reason for, or (3) a risk of this: Risks loss of the entire premium if the price of the underlying security falls.

Question 28 options:

	call buying
	put buying
	uncovered call writer
	covered call writer