1. Distinguish between a put and a call. 2. What does it mean to say ,,an option buyer has a right but not an obligation? 3. Explain the following terms used with the options: a) In the money" b) "Out of money" c) At the money" 4. What is the difference between option premium and option price? 5. What is the relationship between option prices and their intrinsic value? 6. Why is the call or put writer's position considerably different from the buyer's position? 7. What is an index option? What are the main differences between index option and stock option? 8. How can a put used to protect a particular investor's position? 9. What is the maximum amount the buyer of an option can lose? 10. Draw the profit/ loss graph for the following option strategies: a) Buy a put with 3 EURO premium and 70 EURO exercise price; b) Write a call with 2 EURO premium and 50 EURO exercise price