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Q17. Which of the following statements about the potential profits and losses from selling a call is most accurate?
A) Profits are theoretically unlimited.
B) Losses are limited to the strike price plus the premium.
C) Losses are theoretically unlimited.
Q18. Which of the following statements about moneyness is most accurate? When the stock price is:
A) above the strike price, a put option is in-the-money.
B) above the strike price, a put option is out-of-the-money.
C) below the strike price, a call option is in-the-money.
Q19. A put option is “in-the-money” when:
A) the stock price is lower than the exercise price of the option.
B) there is no put option with a lower exercise price in the expiration series.
C) the stock price is higher than the exercise price of the option.
Q20. An out-of-the-money put and an in-the-money call are defined as:
Put Call
A) strike price > market price market price > strike price
B) market price > strike price strike price > market price
C) market price > strike price market price > strike price
Q21. Basil, Inc., common stock has a market value of $47.50. A put available on Basil stock has a strike price of $55.00 and is selling for an option premium of $10.00. The put is:
A) out-of-the-money by $2.50.
B) in-the-money by $7.50.
C) in-the-money by $10.00.
Q22. An investor would exercise a put option when the:
A) price of the stock is equal to the strike price.
B) price of the stock is above the strike price.
C) price of the stock is below the strike price.
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发表于 2009-3-2 10:28
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