21.Consider a put option on Deter, Inc., with an exercise price of $45. The current stock price of Deter is $52. What is the intrinsic value of the put option, and is the put option at-the-money or out-of-the-money?

       Intrinsic Value    Moneyness

A)                     $7       At-the-money

B)                     $7       Out-of-the-money

C)                     $0       At-the-money

D)                     $0       Out-of-the-money

22.Regarding buyers and sellers of put and call options, which of the following statements concerning the resulting option position is most accurate? The buyer of a:

A)   call option is taking a long position and the buyer of a put option is taking a short position.

B)   put option is taking a long position and the seller of a call option is taking a long position.

C)   put option is taking a short position and the seller of a call option is taking a short position.

D)   call option is taking a long position while the seller of a put is taking a short position.

答案和详解如下：

21.Consider a put option on Deter, Inc., with an exercise price of $45. The current stock price of Deter is $52. What is the intrinsic value of the put option, and is the put option at-the-money or out-of-the-money?

       Intrinsic Value    Moneyness

A)                     $7       At-the-money

B)                     $7       Out-of-the-money

C)                     $0       At-the-money

D)                     $0       Out-of-the-money

The correct answer was D)

The option has an intrinsic value of $0, because the stock price is above the exercise price. Put value is MAX (0, X-S). Equivalently, the option is out-of-the-money.

22.Regarding buyers and sellers of put and call options, which of the following statements concerning the resulting option position is most accurate? The buyer of a:

A)   call option is taking a long position and the buyer of a put option is taking a short position.

B)   put option is taking a long position and the seller of a call option is taking a long position.

C)   put option is taking a short position and the seller of a call option is taking a short position.

D)   call option is taking a long position while the seller of a put is taking a short position.

The correct answer was D)

The buyers of both puts and calls are taking long positions in the options contracts (but the buyer of a put is establishing a potentially short exposure to the underlying), while writers (sellers) of each are taking short positions in the options contracts.