Question 1

The number of options acquired when one contract is purchased on an exchange is

Accepted Answer

A) 1 
B) 5 
C) 100 
D) 500 
E) 8,000 
A) 1 
B) 5 
C) 100 
D) 500 
E) 8,000

Question 2

A limit move is when a futures price reaches its all time high or low price.

Accepted Answer

A) True 
 B)False

Question 3

If an investor exercises a cash settled derivative,

Accepted Answer

A) the transaction entails only a bookkeeping entry 
B) must purchase the underlying instrument 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) the transaction entails only a bookkeeping entry 
B) must purchase the underlying instrument 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

The number of options acquired when one contract is purchased on an exchange is

A limit move is when a futures price reaches its all time high or low price.

If an investor exercises a cash settled derivative,

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

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

The number of options acquired when one contract is purchased on an exchange is

A limit move is when a futures price reaches its all time high or low price.

If an investor exercises a cash settled derivative,

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

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