Option Test
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Date Submitted: 05/20/2012 10:47 AM
Chapter 20
Options Markets: Introduction
Multiple Choice Questions
1. The price that the buyer of a call option pays to acquire the option is called the
A. strike price
B. exercise price
C. execution price
D. acquisition price
E. premium
The price that the buyer of a call option pays to acquire the option is called the premium.
Difficulty: Easy
2. The price that the writer of a call option receives to sell the option is called the
A. strike price
B. exercise price
C. execution price
D. acquisition price
E. premium
The price that the writer of a call option receives to sell the option is called the premium.
Difficulty: Easy
3. The price that the buyer of a put option pays to acquire the option is called the
A. strike price
B. exercise price
C. execution price
D. acquisition price
E. premium
The price that the buyer of a put option pays to acquire the option is called the premium.
Difficulty: Easy
4. The price that the writer of a put option receives to sell the option is called the
A. premium
B. exercise price
C. execution price
D. acquisition price
E. strike price
The price that the writer of a put option receives to sell the option is called the premium.
Difficulty: Easy
5. The price that the buyer of a call option pays for the underlying asset if she executes her option is called the
A. strike price
B. exercise price
C. execution price
D. A or C
E. A or B
The price that the buyer of a call option pays for the underlying asset if she executes her option is strike price or exercise price.
Difficulty: Easy
6. The price that the writer of a call option receives for the underlying asset if the buyer executes her option is called the
A. strike price
B. exercise price
C. execution price
D. A or B
E. A or C
The price that the writer of a call option receives for the underlying asset if the buyer executes her option is called the strike price or exercise price....
