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. Chart Advisor

    Bullish Traders Are Turning To Rare ...

  2. Mutual Funds & ETFs

    The Top 3 Silver ETFs

  3. Active Trading Fundamentals

    Invest In Gold Through ETFs

  4. Chart Advisor

    Watch Out For Falling Copper Prices

  5. Mutual Funds & ETFs

    Prospects of Gold ETFs GDX vs. GDXJ

Trading Center