Questions for Chapter 6 Define a call and put option. Using the following examples explain what the investor is receiving. Buy an XYZ July 50 call $2.10. Buy an XYZ October 85 put @ $1.75. Sell an XYZ April 40 put @ $3.50. Sell an August 55 call $1.90. 1) 2) Define the following terms; strike price, intrinsic value, premium, delta Are there advantages and disadvantages in buying an option as compared to a stock? 3)