Will not be exercised
Is worth $7 per share
Buy the stock and buy a call option
Sell the stock and buy a call option
Buy the stock and buy a put option
Buy a call option
Go long the stock
Buy a put option
Write a put option
A call gives you the right and the obligation to buy the underlying asset
A put gives you the right, but not the obligation to sell the underlying asset
Being short an option creates an obligation
The profit for a call holder is less than the payoff
Forwards have daily cash settlement.
Forwards are more apt to be exchange traded
Futures are less standardized
Futures are easier to trade
Most similar to the payoff to a call contract, but the futures payoff can also be negative.
Most similar to the payoff to a put contract, but the futures payoff can also be negative.
Most similar to writing a call contract. (being short a call).
A line that slopes down from left to right at a 45% angle.
A loss of $400 (4 dollars per share * 100 shares per contract)
A gain of $400 ($4 per share * 100 shares per contract)
Impossible to tell since you do not the price of the call when you sold it.
$300 (400 - 100)
A put contract with the above facts is "in the money"
A call contract with the above facts is "out of the money"
The value of the option would be slightly greater than its intrinsic value
More than one of the above is true
If the contract is a call option, its payoff if exercised now is $5.00
If the contract is a put option, it can not be profitably exercised at present.
If it is a put option, you would let it expire worthless.
More than one of the above are true
None of the above
Shorting a call option on oil
Buying a call option on oil
Writing a put option on oil
Selling an oil futures contract