Series 3 - National Commodities Futures

AAA

Options - Answers

  1. D. A would be correct for an in-the-money option.
  2. A. II is at-the-money, not in it.
  3. A. The others are bearish strategies.
  4. D. The rest are false.
  5. C. The rest are false.
  6. B. Strangles use different strike prices, both of which are out of the money.
  7. C.
  8. A. Straddles are used when the investor is unsure of the market's direction
  9. B. Strike price + net premium. The mnemonic device is Calls Add to Lower (CAL)
  10. C A is incorrect as synthetic options utilize a combination of futures and options. A future obligates buyer and seller alike, whereas options obligate only sellers.
General Regulations
Related Articles
  1. Stock Safety: Top 3 Ways to Limit Your ...
    Options & Futures

    Stock Safety: Top 3 Ways to Limit Your ...

  2. Can You Buy Stock Insurace? 3 Strategies ...
    Options & Futures

    Can You Buy Stock Insurace? 3 Strategies ...

  3. How The Price Of Stock Futures Is Calculated
    Options & Futures

    How The Price Of Stock Futures Is Calculated

  4. The Real Estate of Oil
    Options & Futures

    The Real Estate of Oil

  5. Futures, Derivatives and Liquidity: ...
    Options & Futures

    Futures, Derivatives and Liquidity: ...

Trading Center