Too often, traders jump into the options game with little or no understanding of how many options strategies are available to limit their risk and maximize return. With a little bit of effort, however, traders can learn how to take advantage of the flexibility and full power of options as a trading vehicle. With a little bit of effort, however, traders can learn how to take advaYou are using an outdated browserYour browser, an old version of Internet Explorer, is not fully supported by Quizlet.Please download a newer sell put options quiz browser to improve your experience.Google ChromeMozilla Firefox.
The identity of the underlying stock (IBM)2. The strike price, or exercise price (k)3. The option contract size (100 shares)4. The option expiration date, or option maturity (about 90 days)5. The option exercise style (American or European). The delivery, or settlement, procedure. Mr. Jones thinks that the market price of ABC will remain stable or decline modestly in price and is looking for increased income.
Which of the following option positions would be best for Mr. An option trader buys 1 ABC April 25 put. A few months later, the trader exercises the option. Take your time because not all questions are easy.1. You sold a call option, hoping it would expire worthless. However, the stock moved higher and the call option is now in the money by five points.
You are anxious to eliminate this position from your portfolio. Which of these choices is possible:a. Exercise your sell put options quiz optionb. Buy the identical call optionc. Tell your broker to notify the option owner to exercise the optiond. None of this is possible2. Long 300 shares of XYXb. Short 300 shares of XYXc. Neither. A stock position is never equivalent to an option position3.
You own five European style index options.