4、A shout option allows the owner to:

A) receive the greater of the intrinsic value at shout time or the intrinsic value at expiration. 
 
B) pay the average price over the option period from shout time. 
 
C) choose whether the option is a call or a put at shout time.
 
D) cancel the option if it falls below a specified price barrier.

The correct answer is A

Shout options allow the owner to shout to the writer one time during the life of the option. At expiration, the owner will receive the intrinsic value at either shout time or expiration, whichever is greater.

5、An option wherein the payoff is based on the highest or lowest price experienced over some period of time, whichever is most advantageous to the option holder, is called what?

A) An outside barrier option.
 
B) A rainbow option.
 
C) A fixed-quanto option.
 
D) A lookback option.

The correct answer is D

An option wherein the payoff is based on the highest or lowest price experienced over some period of time, whichever is most advantageous to the option holder, is called a lookback option.

6、A down-and-out call option is an option that:

A) comes into existence when the underlying asset price falls to a designated barrier price.
 
B) comes into existence when the underlying asset price rises to a designated barrier price.
 
C) ceases to exist when the underlying asset price rises to a designated barrier price.
 
D) ceases to exist when the underlying asset price falls to a designated barrier price.

The correct answer is D

This is the definition of a down-and-out call. “Out” signifies that the option ceases to exist when the price moves “down” to a specified barrier.

7、A down-and-in call option is an option that:

A) comes into existence when the underlying asset price rises to a designated barrier price.
 
B) ceases to exist when the underlying asset price falls to a designated barrier price.
 
C) comes into existence when the underlying asset price falls to a designated barrier price.
 
D) ceases to exist when the underlying asset price rises to a designated barrier price.

The correct answer is C

This is the definition of a down-and-in call: “in” signifies that the option comes into existence when the price moves “down” to a specified barrier.

辛苦了！