1.
Which options order would you use when you wish to write call options?
A
Sell To Open
B
Sell To Close
C
Buy To Open
D
Buy To Close
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20 practice sets · Page 1 of 1
Which options order would you use when you wish to write call options?
Sell To Open
Sell To Close
Buy To Open
Buy To Close
Which options order would you use when you wish to buy put options?
Sell To Close
Sell To Open
Buy To Open
Buy To Close
Which options order would you use when you wish to buy call options?
Sell To Open
Buy To Open
Buy To Close
None of the above
Which options order would you use if you wish to write put options?
Sell To Close
Buy To Open
Sell To Open
Buy To Close
Which of the following statement is true?
The extrinsic value of call options is highest when it is at the money
The extrinsic value of call options is highest when it is out of the money
The extrinsic value of call options is highest when it is in the money
The extrinsic value of call options is inversely proportionate to its intrinsic value
Which of the following positions is most likely to have a delta of zero?
long at the money call option + short underlying stock
Short at the money call option + short underlying stock
Short at the money call option + long underlying stock
long at the money call option + short at the money put option
Which of the following positions are you most likely to put on if a stock is going to go down?
Long at the money put options + short out of the money put options
Long out of the money put options + short at the money put options
Long stock + long out of the money put options
Long stock + long out of the money call options
Assuming a stock is $10, its $9 strike price put option asking for $1.00 consists of
$0.70 of extrinsic value and $0.30 of intrinsic value
$1.00 of intrinsic value
$1.00 of extrinsic value
$0.70 of intrinsic value and $0.30 of extrinsic value
Assuming a stock is $10, its $9 strike price call options asking for $1.30 consists of
$1 intrinsic value and $0.30 extrinsic value
$1 extrinsic value and $0.30 intrinsic value
$1.30 worth of extrinsic value
$1.30 worth of intrinsic value
Which of the following position would you most likely put on if a stock is going to go up?
Long underlying stock + short out of the money call options
Long call option + long put option
Long put option + short call option
Short underlying stock + long put option
When a stock declares dividends
extrinsic value of call options go up
intrinsic value of call options go up
extrinsic value of call options go down
does not affect call options pricing
Options Vega measures
the implied volatility of an option
the price sensitivity of an option to changes in implied volatility
the expected volatility of the underlying stock
the price sensitivity of the underlying stock to changes in implied volatility
Options Theta measures
rate of decay of an options extrinsic value on a daily basis
rate of decay of an options intrinsic value on a daily basis
rate of decay of an options extrinsic value on a monthly basis
rate of decay of an options intrinsic value on a monthly basis
Options Rho measures
the change in the price of an option to changes in interest rate
the change in the price of an option to changes in volatility
the change in price of an option to changes in implied volatility
the change in price of an option to changes in real interest rate
Options Gamma measures
the rate of change of options price to changes in the price of the underlying stock
the rate of change of options volatility to changes in the price of the underlying stock
the rate of change of options delta to changes in the price of the underlying stock
the level of toxic exposure of an option
Options delta measures the
rate of change of a stocks price to changes in the price of the option
rate of change of an options price to changes in the implied volatility of the underlying stock
rate of change of a stocks price to changes in its implied volatility
rate of change of an options price to price changes of the underlying stock
Intrinsic value is
The part of the price of an option that decays over time
The part of the price of an option that you get as profit when you buy options
The part of the price of an option that indicates it built in value
The part of the price of an option that remains stagnant regardless of stock movement
Generally, when the price of a stock rises
rho of call options increases
delta of call options decreases
rho of call options decreases
delta of call options increases
Generally, when the price of a stock decreases
delta of short call options inceases
delta of short call options decreases
delta of long call options increases
delta of call options remain unaffected
Extrinsic value is
the part of the price of an option that moves with the underlying stock
the part of the price of an option that reduces over time
the part of the price of an option indicating its built in value
the part of the price of an option that you profit from when you buy an option