question number 5 and 6

ms/quizz 4) 6,30 5) None of these answers are correct. 0/ Question 5 Strike price intervals for equity options are set at $2.50 intervals when the stock price is between $5 and $25, $5 intervals whe stock price is between $25 and $200, and $10 intervals when the stock price is over $ 200. Consider a stock that had an initial offering price of $19, which then rose and closed at its highest level $26 at the end of the day. Which full set of strike price opt traded? 1) $17.50, $20, $22.50, $25, and $30 2) $20, $22.50, $25, and $30 3) $17.50, $20, $22.50, $25, $27.50, and $30 4) $15, $20, $25, and $30 5) $20, $25, $30, and $35 Question 6 0/0.1 po Identify the INCORRECT statement about spread strategies created by trading options of the same type (either all calls or all puts) on the same underlying with identical terms (unless noted otherwise): 1) Horizontal spreads (or, time or calendar spreads) are established by buying one option and selling another option with the same strike but different maturity dates. 2) Diagonal spreads are established by buying one option and selling another option that differ both in terms of strike price and maturity dates. 3) A condor spread is created by trading four options with three different strike prices: two options with extreme strike prices are bought (written) and two options are written (bought) with the same middle strike price. 4) Vertical spreads (also called money, perpendicular, or price spreads) are established by buying one option and selling another option with a different strike price. SA butterfly spread is created by trading four options with three different strike prices: two options with extreme strike prices are bought (written) and two options are written (bought) with the middle strike price. Question 7 0/0.1 points F3 4 FS F& F7 # 3 DII FB $ F9 A F10 4 5 6 & 7 ( 8 9 0 R T U ms/quizz 4) 6,30 5) None of these answers are correct. 0/ Question 5 Strike price intervals for equity options are set at $2.50 intervals when the stock price is between $5 and $25, $5 intervals whe stock price is between $25 and $200, and $10 intervals when the stock price is over $ 200. Consider a stock that had an initial offering price of $19, which then rose and closed at its highest level $26 at the end of the day. Which full set of strike price opt traded? 1) $17.50, $20, $22.50, $25, and $30 2) $20, $22.50, $25, and $30 3) $17.50, $20, $22.50, $25, $27.50, and $30 4) $15, $20, $25, and $30 5) $20, $25, $30, and $35 Question 6 0/0.1 po Identify the INCORRECT statement about spread strategies created by trading options of the same type (either all calls or all puts) on the same underlying with identical terms (unless noted otherwise): 1) Horizontal spreads (or, time or calendar spreads) are established by buying one option and selling another option with the same strike but different maturity dates. 2) Diagonal spreads are established by buying one option and selling another option that differ both in terms of strike price and maturity dates. 3) A condor spread is created by trading four options with three different strike prices: two options with extreme strike prices are bought (written) and two options are written (bought) with the same middle strike price. 4) Vertical spreads (also called money, perpendicular, or price spreads) are established by buying one option and selling another option with a different strike price. SA butterfly spread is created by trading four options with three different strike prices: two options with extreme strike prices are bought (written) and two options are written (bought) with the middle strike price. Question 7 0/0.1 points F3 4 FS F& F7 # 3 DII FB $ F9 A F10 4 5 6 & 7 ( 8 9 0 R T U