The market that is a zero-sum game is the a. common stock. b. preferred stock. c. options.

d. Treasury bill.

A put option does not specify the a. number of shares that can be sold. b. exercise price. c. premium on the put option. d. company whose shares can be sold.

The purchaser of a put option expects the stock price to a. fall. b. double. c. remain level.

As compensation for the risk of an option writer, the option purchaser will pay a. a commission. b. a cash dividend. c. an intrinsic value. d. a premium.