投资学第7版Test-Bank答案20

Chapter20OptionsMarkets:Introduction497MultipleChoiceQuestions1.ThepricethatthebuyerofacalloptionpaystoacquiretheoptioniscalledtheA)strikepriceB)exercisepriceC)executionpriceD)acquisitionpriceE)premiumAnswer:EDifficulty:Easy2.ThepricethatthewriterofacalloptionreceivestoselltheoptioniscalledtheA)strikepriceB)exercisepriceC)executionpriceD)acquisitionpriceE)premiumAnswer:EDifficulty:Easy3.ThepricethatthebuyerofaputoptionpaystoacquiretheoptioniscalledtheA)strikepriceB)exercisepriceC)executionpriceD)acquisitionpriceE)premiumAnswer:EDifficulty:Easy4.ThepricethatthewriterofaputoptionreceivestoselltheoptioniscalledtheA)premiumB)exercisepriceC)executionpriceD)acquisitionpriceE)strikepriceAnswer:ADifficulty:EasyChapter20OptionsMarkets:Introduction4985.ThepricethatthebuyerofacalloptionpaysfortheunderlyingassetifsheexecutesheroptioniscalledtheA)strikepriceB)exercisepriceC)executionpriceD)AorCE)AorBAnswer:EDifficulty:Easy6.ThepricethatthewriterofacalloptionreceivesfortheunderlyingassetifthebuyerexecutesheroptioniscalledtheA)strikepriceB)exercisepriceC)executionpriceD)AorBE)AorCAnswer:DDifficulty:Easy7.ThepricethatthebuyerofaputoptionreceivesfortheunderlyingassetifsheexecutesheroptioniscalledtheA)strikepriceB)exercisepriceC)executionpriceD)AorCE)AorBAnswer:EDifficulty:Easy8.ThepricethatthewriterofaputoptionreceivesfortheunderlyingassetiftheoptionisexercisediscalledtheA)strikepriceB)exercisepriceC)executionpriceD)AorBE)noneoftheaboveAnswer:EDifficulty:EasyChapter20OptionsMarkets:Introduction4999.AnAmericancalloptionallowsthebuyertoA)selltheunderlyingassetattheexercisepriceonorbeforetheexpirationdate.B)buytheunderlyingassetattheexercisepriceonorbeforetheexpirationdate.C)selltheoptionintheopenmarketpriortoexpiration.D)AandC.E)BandC.Answer:EDifficulty:EasyRationale:AnAmericancalloptionmaybeexercised(allowingtheholdertobuytheunderlyingasset)onorbeforeexpiration;theoptioncontractalsomaybesoldpriortoexpiration.10.AEuropeancalloptionallowsthebuyertoA)selltheunderlyingassetattheexercisepriceontheexpirationdate.B)buytheunderlyingassetattheexercisepriceonorbeforetheexpirationdate.C)selltheoptionintheopenmarketpriortoexpiration.D)buytheunderlyingassetattheexercisepriceontheexpirationdate.E)CandD.Answer:EDifficulty:EasyRationale:AEuropeancalloptionmaybeexercised(allowingtheholdertobuytheunderlyingasset)ontheexpirationdate;theoptioncontractalsomaybesoldpriortoexpiration.11.AnAmericanputoptionallowstheholdertoA)buytheunderlyingassetatthestrikingpriceonorbeforetheexpirationdate.B)selltheunderlyingassetatthestrikingpriceonorbeforetheexpirationdate.C)potentiallybenefitfromastockpricedecreasewithlessriskthanshortsellingthestock.D)BandC.E)AandC.Answer:DDifficulty:EasyRationale:AnAmericanputoptionallowsthebuyertoselltheunderlyingassetatthestrikingpriceonorbeforetheexpirationdate.Theputoptionalsoallowstheinvestortobenefitfromanexpectedstockpricedecreasewhileriskingonlytheamountinvestedinthecontract.Chapter20OptionsMarkets:Introduction50012.AEuropeanputoptionallowstheholdertoA)buytheunderlyingassetatthestrikingpriceonorbeforetheexpirationdate.B)selltheunderlyingassetatthestrikingpriceonorbeforetheexpirationdate.C)potentiallybenefitfromastockpricedecreasewithlessriskthanshortsellingthestock.D)selltheunderlyingassetatthestrikingpriceontheexpirationdate.E)CandD.Answer:EDifficulty:EasyRationale:AEuropeanputoptionallowsthebuyertoselltheunderlyingassetatthestrikingpriceonorbeforetheexpirationdate.Theputoptionalsoallowstheinvestortobenefitfromanexpectedstockpricedecreasewhileriskingonlytheamountinvestedinthecontract.13.AnAmericanputoptioncanbeexercisedA)anytimeonorbeforetheexpirationdate.B)onlyontheexpirationdate.C)anytimeintheindefinitefuture.D)onlyafterdividendsarepaid.E)noneoftheabove.Answer:ADifficulty:EasyRationale:Americanoptionscanbeexercisedonorbeforeexpirationdate.14.AnAmericancalloptioncanbeexercisedA)anytimeonorbeforetheexpirationdate.B)onlyontheexpirationdate.C)anytimeintheindefinitefuture.D)onlyafterdividendsarepaid.E)noneoftheabove.Answer:ADifficulty:EasyRationale:Americanoptionscanbeexercisedonorbeforeexpirationdate.15.AEuropeancalloptioncanbeexercisedA)anytimeinthefuture.B)onlyontheexpirationdate.C)ifthepriceoftheunderlyingassetdeclinesbelowtheexerciseprice.D)immediatelyafterdividendsarepaid.E)noneoftheabove.Answer:BDifficulty:EasyRationale:Europeanoptionscanbeexercisedatexpirationonly.Chapter20OptionsMarkets:Introduction50116.AEuropeanputoptioncanbeexercisedA)anytimeinthefuture.B)onlyontheexpirationdate.C)ifthepriceoftheunderlyingassetdeclinesbelowtheexerciseprice.D)immediatelyafterdividendsarepaid.E)noneoftheabove.Answer:BDifficulty:EasyRationale:Europeanoptionscanbeexercisedatexpirationonly.17.ToadjustforstocksplitsA)theexercisepriceoftheoptionisreducedbythefactorofthesplitandthenumberofoptionheldisincreasedbythatfactor.B)theexercisepriceoftheoptionisincreasedbythefactorofthesplitandthenumberofoptionheldisreducedbythatfactor.C)theexercisepriceoftheoptionisreducedbythefactorofthesplitandthenumberofoptionheldisreducedbythatfactor.D)