投资学题库20

Chapter20-OptionsMarkets:Introduction20-1Chapter20OptionsMarkets:IntroductionMultipleChoiceQuestions1.ThepricethatthebuyerofacalloptionpaystoacquiretheoptioniscalledtheE.premium2.ThepricethatthewriterofacalloptionreceivestoselltheoptioniscalledtheE.premium3.ThepricethatthebuyerofaputoptionpaystoacquiretheoptioniscalledtheE.premium4.ThepricethatthewriterofaputoptionreceivestoselltheoptioniscalledtheA.premium5.ThepricethatthebuyerofacalloptionpaysfortheunderlyingassetifsheexecutesheroptioniscalledtheA.strikepriceB.exerciseprice6.ThepricethatthewriterofacalloptionreceivesfortheunderlyingassetifthebuyerexecutesheroptioniscalledtheA.strikepriceB.exerciseprice7.ThepricethatthebuyerofaputoptionreceivesfortheunderlyingassetifsheexecutesheroptioniscalledtheA.strikepriceB.exerciseprice8.Thepricethatthewriterofaputoptionreceivesfortheunderlyingassetiftheoptionisexerciseddependsonthemarketpriceatthetime.9.AnAmericancalloptionallowsthebuyertoB.buytheunderlyingassetattheexercisepriceonorbeforetheexpirationdate.C.selltheoptionintheopenmarketpriortoexpiration.10.AEuropeancalloptionallowsthebuyertoC.selltheoptionintheopenmarketpriortoexpiration.D.buytheunderlyingassetattheexercisepriceontheexpirationdate.Chapter20-OptionsMarkets:Introduction20-211.AnAmericanputoptionallowstheholdertoB.selltheunderlyingassetatthestrikingpriceonorbeforetheexpirationdate.C.potentiallybenefitfromastockpricedecreasewithlessriskthanshortsellingthestock.12.AEuropeanputoptionallowstheholdertoC.potentiallybenefitfromastockpricedecreasewithlessriskthanshortsellingthestock.D.selltheunderlyingassetatthestrikingpriceontheexpirationdate.13.AnAmericanputoptioncanbeexercisedA.anytimeonorbeforetheexpirationdate.14.AnAmericancalloptioncanbeexercisedA.anytimeonorbeforetheexpirationdate.15.AEuropeancalloptioncanbeexercisedB.onlyontheexpirationdate.16.AEuropeanputoptioncanbeexercisedB.onlyontheexpirationdate.17.ToadjustforstocksplitsA.theexercisepriceoftheoptionisreducedbythefactorofthesplitandthenumberofoptionheldisincreasedbythatfactor.18.Allelseequal,calloptionvaluesarelowerC.forhighdividendpayoutpolicies.19.Allelseequal,calloptionvaluesarehigherB.forlowdividendpayoutpolicies.20.ThecurrentmarketpriceofashareofAT&Tstockis$50.Ifacalloptiononthisstockhasastrikepriceof$45,thecallB.isinthemoney.C.sellsforahigherpricethanifthemarketpriceofAT&Tstockis$40.21.ThecurrentmarketpriceofashareofBoeingstockis$75.Ifacalloptiononthisstockhasastrikepriceof$70,thecallB.isinthemoney.C.sellsforahigherpricethanifthemarketpriceofBoeingstockis$70.22.ThecurrentmarketpriceofashareofCSCOstockis$22.Ifacalloptiononthisstockhasastrikepriceof$20,thecallB.isinthemoney.C.sellsforahigherpricethanifthemarketpriceofCSCOstockis$21.Chapter20-OptionsMarkets:Introduction20-323.ThecurrentmarketpriceofashareofDisneystockis$30.Ifacalloptiononthisstockhasastrikepriceof$35,thecallA.isoutofthemoney.24.ThecurrentmarketpriceofashareofCATstockis$76.Ifacalloptiononthisstockhasastrikepriceof$76,thecallC.isatthemoney.Chapter20-OptionsMarkets:Introduction20-425.AputoptiononastockissaidtobeoutofthemoneyifB.theexercisepriceislessthanthestockprice.26.AputoptiononastockissaidtobeinthemoneyifA.theexercisepriceishigherthanthestockprice.27.AputoptiononastockissaidtobeatthemoneyifC.theexercisepriceisequaltothestockprice.28.AcalloptiononastockissaidtobeoutofthemoneyifA.theexercisepriceishigherthanthestockprice.29.AcalloptiononastockissaidtobeinthemoneyifB.theexercisepriceislessthanthestockprice.30.AcalloptiononastockissaidtobeatthemoneyifC.theexercisepriceisequaltothestockprice.31.ThecurrentmarketpriceofashareofJNJstockis$60.Ifaputoptiononthisstockhasastrikepriceof$55,theputA.isinthemoney.B.isoutofthemoney.32.Thecurrentmarketpriceofashareofastockis$80.Ifaputoptiononthisstockhasastrikepriceof$75,theputB.isoutofthemoney.C.sellsforahigherpricethanifthemarketpriceofthestockis$75.33.Thecurrentmarketpriceofashareofastockis$20.Ifaputoptiononthisstockhasastrikepriceof$18,theputA.isoutofthemoney.C.sellsforahigherpricethanifthestrikepriceoftheputoptionwas$23.Chapter20-OptionsMarkets:Introduction20-534.ThecurrentmarketpriceofashareofMOTstockis$15.Ifaputoptiononthisstockhasastrikepriceof$20,theputA.isoutofthemoney.35.ThecurrentmarketpriceofashareofPALMstockis$75.Ifaputoptiononthisstockhasastrikepriceof$79,theputB.isinthemoney.C.canbeexercisedprofitably.36.ThecurrentmarketpriceofashareofAT&Tstockis$50.Ifaputoptiononthisstockhasastrikepriceof$45,theputA.isoutofthemoney.C.sellsforalowerpricethanifthemarketpriceofAT&Tstockis$40.37.ThecurrentmarketpriceofashareofBoeingstockis$75.Ifaputoptiononthisstockhasastrikepriceof$70,theputA.isoutofthemoney.38.ThecurrentmarketpriceofashareofCSCOstockis$22.Ifaputoptiononthisstockhasastrikepriceof$20,theputA.isoutofthemoney.C.sellsforahigherpricethanifthestrikepriceoftheputoptionwas$25.39.ThecurrentmarketpriceofashareofDisneystockis$30.Ifaputoptiononthisstockhasastrikepriceof$35,theputA.isoutofthemoney.40.ThecurrentmarketpriceofashareofCATstockis$76.Ifaputoptiononthisstockhasastrikepriceof$80,theput