Reading 73: Option Markets and Contracts - LOS g ～ Q1-3

答案和详解如下：

1.Which of the following statements about puts is FALSE? The most the:

A)   buyer can gain is unlimited.

B)   writer can gain is the put premium.

C)   buyer of a put can lose is the premium.

D)   writer can lose is the strike price less the premium.

The correct answer was A)

The most the buyer can gain is the strike price of the stock less the premium.

2.Which of the following statements regarding an option prior to expiration is TRUE? The maximum value of:

A)   a European put is less than the maximum value of an American put.

B)   an American call is less than the maximum value of a European call.

C)   a European put is equal to the maximum value of an American put.

D)   a European call is greater than the maximum value of an American call.

The correct answer was A)

The maximum value of a European put is X/(1+R)^T and the maximum value of an American put is X.

3.The minimum value for a European call option is:

A)   min [0, S – X/(1+R)^T].

B)   max [0, S – X].

C)   max [0, S – X/(1+R)^T].

D)   max [0, (S – X) /(1+R)^T].

The correct answer was C)

The minimum value of a European call option is max [0, S – X/(1+R)^T].