$1.$ What is the difference between a 'call' and 'put' option?

A call gives you the option to buy stock, while a put gives you the option to sell stock.

A call option gives you the opportunity to buy stock, while a put option obligates you to buy stock.

A call is an option that will make you money, while a put is an option that loses you money.

A call is an individual option, while a put is the name for the contract of $100.$

$2.$ If you see an option quoted at $$2\mathrm{.}25,$ how much will that option contract cost you $($excluding transaction fees$)?$

It depends on the price of the associated shares of stock.

$$225$

$$2\mathrm{.}25$

$$22\mathrm{.}50$

$3.$ What is a 'derivative,$\text{'}$ when speaking of financial instruments?

A financial instrument that combines stocks and bonds

An obligation to buy or sell stock

An instrument that gets its value from the value of another financial instrument

None of these answers are correct.

$4.$ What is the maximum amount of money you can lose if you buy a call or a put?

It depends on the difference between the strike price and the actual price of the stock.

None of the answers are correct.

Everything you spent on the call or put.

Half of your investment.

$5.$ Other than the price of the associated stock, what factor determines the price of an option?

The amount of time before the expiration, or strike.

The number of contracts you buy

Whether the associated stock is part of a major index, like the Dow or S&P $500$

The investor you buy the option from