Financial Derivatives Quiz Set 4

1) The seller of an option has the?

Correct! Wrong!

2) The seller of an option is ______ to buy or sell the underlying asset while the purchaser of an option has the ______ to buy or sell the asset?

Correct! Wrong!

3) The amount paid for an option is the?

Correct! Wrong!

4) An option that can be exercised at any time up to maturity is called as?

Correct! Wrong!

5) An option that can only be exercised at maturity is called as?

Correct! Wrong!

6) Options on individual stocks are referred to as?

Correct! Wrong!

7) Options on futures contracts are referred to as?

Correct! Wrong!

8) An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a?

Correct! Wrong!

9) A call option gives the owner?

Correct! Wrong!

10) A Call option gives the seller?

Correct! Wrong!

11) An option allowing the holder to buy an asset in the future is a?

Correct! Wrong!

12) An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a?

Correct! Wrong!

13) A put option gives the owner?

Correct! Wrong!

14) A put option gives the seller?

Correct! Wrong!

15) An option allowing the owner to sell an asset at a future date is a?

Correct! Wrong!

16) If you buy a call option on treasury futures at 115, and at expiration the market price is 110?

Correct! Wrong!

17) If you buy a call option on treasury futures at 110, and at expiration the market price is 115?

Correct! Wrong!

18) If you buy a put option on treasury futures at 115, and at expiration the market price is 110?

Correct! Wrong!

19) If you buy a put option on treasury futures at 110, and at expiration the market price is 115?

Correct! Wrong!

20) If, for a Rs. 1000 premium, you buy a Rs. 100,000 call option on bond futures with a strike price of 110, and at the expiration date the price is 114?

Correct! Wrong!

Financial Derivatives Quiz Set 4

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