QUESTION 46

1. The strike price of a put option is the price

   		of the underlying stock at the time that the options contract is purchased.
   		an investor must pay for the options contract.
   		at which the underlying stock can be sold.
   		at which the underlying stock can be bought.

QUESTION 47

1. A put has fundamental value as long as

   		the strike price of the put is less than the market value of the underlying asset.
   		the market price of the underlying financial asset is less than the strike price.
   		the market price of the underlying financial asset has a positive value.
   		the strike price of the put is greater than the time premium of the put.

QUESTION 48

1. Which of the following represent in-the-money options? I. a call when the market price exceeds the strike price II. a call when the strike price exceeds the market price III. a put when the market price exceeds the strike price IV. a put when the strike price exceeds the market price

   		I and IV only
   		I and III only
   		II and IV only
   		II and III only

2 points

QUESTION 49

1. What is the value a call option for 1 share of XYZ stock with strike price $50 when the market price of XYZ is $60?

   		$60
   		$0
   		$50
   		$10

QUESTION 50

1. What is the value of a put option for 1 share of XYZ stock with strike price $50 when the market price of XYZ is $60?

   		$60
   		$0
   		$10
   		$50