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

You May Also Like

Related Articles
  1. VelocityShares 3x Long Crude Oil ETN has the potential for huge returns, but there are several reasons why you might want to steer clear for now.
    Mutual Funds & ETFs

    A Leveraged Oil ETN For The Future (Just ...

  2. Options & Futures

    Futures Quotes Explained The "Easy" ...

  3. Options & Futures

    Stock Futures vs Stock Options

  4. Options & Futures

    The Potential Of Low-Priced Options

  5. First time stock investors may ask, is there any way to buy insurance on stocks to prevent losses?
    Options & Futures

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

Trading Center