Options
6 Questions
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A short quiz to test your understanding of our Master Feeder Fund lesson.
Questions and Answers
- 1.An option is a contract giving the buyer the right but not the obligation to buy or sell an underlying asset at a specific price on or before a certain date
- A.
True
- B.
False
- 2.Which type of Option gives option to sell the underlying asset?
- A.
Call
- B.
Short
- C.
Put
- 3.The price at which the underlying asset may be exercised is called the strike price?
- A.
True
- B.
False
- 4.Which of below do not appear on an Option contract?
- A.
Strike Price
- B.
Dividend Rate
- C.
Premium
- 5.A European Option can only be exercised on expiration?
- A.
True
- B.
False
- 6.Buyers of Options are often referred to as...
- A.
Writers
- B.
Poets
- C.
Holders
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