Question: Choose the correct answer: Gary writes a call option on Stock RSV that has 6-months left to expire. If Gary has no other position in

Choose the correct answer: Gary writes a call option on Stock RSV that has 6-months left to expire. If Gary has no other position in Stock RSV the potential loss on his position is increasing when the stock price is decreasing limited to the time value of the option limited to the premium on the option unlimited Choose the correct answer: The current market price of a share of IBM's stock is $110. If a call option on IBM's stock has a strike price of $115, the call is in the money and has a positive intrinsic value is at the money is out of the money and has a positive exercise value is out of the money is in the money A prime disadvantage of buying a stock index call option in anticipation of an increase in the market is the short life of the option. For the strategy to generate a profit, the market must rise during the lifetime of the option. True False Choose the correct answer. The current market price of a share of Kellogg's stock is $60. If a put option on Kellogg's stock has a strike price of $65, the put in the money out of the money at the money has a negative exercise value

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