Question: I need 3-4-5-8-9 pleasee I. An option is a type of contract between a bayer and a writer wherein one grants the other the to
I. An option is a type of contract between a bayer and a writer wherein one grants the other the to buy or sell a specifie asset at a specific price within a specified date ar right. b obligation c tax status d power of attormey 2. A option gives the buyer the right to purchase a specific number of shares of a specific company from the writer at a specific purchase price by a specific date a put call c. stock index. d. swap 3. The price of an option contract paid to the writer is known as the a commission b percentage spread c. premium e. exercise price 4. The intrinsic value of an option is the value if it were exercised a immediately b. only at the expiration date. c out-of-the money d in-the-money 5. The termindicates that the option writer does not own the underlying stock on which the option is writtien a off-cover b naked e covered call writing. d. European option. 6. An American option can be exercised a only on its expiration date at any central security exchange anytime during its life d. only when the stock pays dividends 7. The market that is a zero-sum game is the a common stock b preferred stock. c options d. Treasury bill 8. For an option, the exercise price is also called the a striking price b booking price. c. market value d. spot price 9The purchaser of a call option feels that the stock will a pay a large dividend b maintain a level price c have a drop in price d. have a price rise
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