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Q11. Which of the following represents a long position in an option?
A) Writing a call option.
B) Buying a put option.
C) Writing a put option.
Q12. Which of the following statements concerning an American-style option is least accurate?
A) It allows the holder the right to exercise before maturity of the option.
B) The predominant option type is American-style, rather than European-style.
C) They are only traded in the U.S.
Q13. Which of the following statements about uncovered call options is least accurate?
A) The most the writer can make is the premium plus the difference between the exercise price (X) and the stock price (S).
B) The loss potential to the writer is unlimited.
C) The profit potential to the holder is unlimited.
Q14. A put option currently has an option premium of $3 and a strike price of $40. The market price of the stock is $42 at expiration. The expiration day value of the option is:
A) $2.
B) $5.
C) $0.
Q15. What is the primary difference between an American and a European option?
A) American and European options are never written on the same underlying asset.
B) The American option can be exercised at anytime on or before its expiration date.
C) The European option can only be traded on overseas markets.
Q16. Which of the following statements about European and American options is least accurate?
A) American options are far more common than European options.
B) European options offer more flexible trading opportunities for speculators.
C) European options are easier to analyze and value than American options.
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发表于 2009-3-2 10:26
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