Multiple Choice
Which of the following is false?
A) The option premium is a down payment on the option terms.
B) The option premium should never be less than the intrinsic value.
C) A call option and a put option with similar terms cannot both be in-the-money at the same time.
D) Call premiums and put premiums can both change in value every day.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Writers of call options must own the
Q34: The option writer decides when and if
Q35: The first U.S. derivatives exchange was the
Q36: A European option may only be exercised
Q37: A corn farmer would buy corn futures
Q39: Accrued interest is part of the invoice
Q40: Buying an option as an opening transaction
Q41: An in-the-money option must have intrinsic value.
Q42: Trades between _ and _ usually flow
Q43: Some derivatives can be used for income