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Lesson 9- Options Flashcards | StudBud
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Lesson 9- Options
Lesson 9- Options
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Questions
5
Answers
1
Put option= buyer has the right, but not the obligation, to
purchase
a fixed quantity of stock for a fixed price.
True
False
2
Carl buys a call option on RBC stock with a strike price of $40. The market price of RBC is $55. The option is:
In the money
Out of the money
European
At the money
3
The price paid by the option buyer to the writer of the option, in order to purchase the option.
Option premium
Exercise price
Strike price
Expiration
4
Call option= buyer has the right, but not the obligation, to
sell
a fixed quantity of stock for a fixed price.
True
False
5
Carl buys a put option on RBC stock with an exercise price of $42. The market price of RBC is $56. The option is:
European
Out of the money
In the money
At the money
