Question 1

A call option priced at $2 with a stock price of $30 and an exercise price of $35 allows the holder to buy the stock at

Accepted Answer

A)  $2 
B)  $32 
C)  $33 
D)  $35 
E)  none of the above 
A)  $2 
B)  $32 
C)  $33 
D)  $35 
E)  none of the above

Question 2

All of the following are forms of options except

Accepted Answer

A)  convertible bonds 
B)  callable bonds 
C)  warrants 
D)  mutual funds 
E)  none of the above 
A)  convertible bonds 
B)  callable bonds 
C)  warrants 
D)  mutual funds 
E)  none of the above

Question 3

The options market is regulated by the Securities Investor Protection Corporation.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following index options is the most widely traded?

Accepted Answer

A)  S&P 500 
B)  Nikkei 225 
C)  Technology Index 
D)  New York Stock Exchange Index 
E)  none of the above 
A)  S&P 500 
B)  Nikkei 225 
C)  Technology Index 
D)  New York Stock Exchange Index 
E)  none of the above

Question 5

An investor who exercises a call option on an index must

Accepted Answer

A)  accept the cash difference between the index and the exercise price 
B)  purchase all of the stocks in the index in their appropriate proportions from the writer 
C)  immediately buy a put option to offset the call option 
D)  immediately write another call option to offset 
E)  none of the above 
A)  accept the cash difference between the index and the exercise price 
B)  purchase all of the stocks in the index in their appropriate proportions from the writer 
C)  immediately buy a put option to offset the call option 
D)  immediately write another call option to offset 
E)  none of the above

A call option priced at $2 with a stock price of $30 and an exercise price of $35 allows the holder to buy the stock at

All of the following are forms of options except

The options market is regulated by the Securities Investor Protection Corporation.

Which of the following index options is the most widely traded?

An investor who exercises a call option on an index must

Introduction

Principles of Option Pricing

Option Pricing Models: The Binomial Model

Option Pricing Models: The Black-Scholes-Merton Model

Basic Option Strategies

Advanced Option Strategies

Structure of Forward and Futures Markets

Principles of Pricing Forwards, Futures and Options on Futures

Futures Arbitrage Strategies

Forward and Futures Hedging, Spread, and Target Strategies

Swaps

Interest Rate Forwards and Options

Advanced Derivatives and Strategies

Financial Risk Management Techniques and Appplications

Managing Risk in an Organization

Filters

Exam 2: Structure of Options Markets

A call option priced at $2 with a stock price of $30 and an exercise price of $35 allows the holder to buy the stock at

All of the following are forms of options except

The options market is regulated by the Securities Investor Protection Corporation.

Which of the following index options is the most widely traded?

An investor who exercises a call option on an index must

Introduction

Principles of Option Pricing

Option Pricing Models: The Binomial Model

Option Pricing Models: The Black-Scholes-Merton Model

Basic Option Strategies

Advanced Option Strategies

Structure of Forward and Futures Markets

Principles of Pricing Forwards, Futures and Options on Futures

Futures Arbitrage Strategies

Forward and Futures Hedging, Spread, and Target Strategies

Swaps

Interest Rate Forwards and Options

Advanced Derivatives and Strategies

Financial Risk Management Techniques and Appplications

Managing Risk in an Organization

Filters