Podcast
Questions and Answers
What is the profit from buying one European call option as per the provided information?
What is the profit from buying one European call option as per the provided information?
- $100
- $90 (correct)
- $70
- $80
What is the profit from writing one European call option with a strike price of $100?
What is the profit from writing one European call option with a strike price of $100?
- $70 (correct)
- $110
- $130
- $120
What is the profit from buying a European put option with a strike price of $70?
What is the profit from buying a European put option with a strike price of $70?
- $20 (correct)
- $0
- $-7
- $10
What is the profit from writing a European put option with a strike price of $70?
What is the profit from writing a European put option with a strike price of $70?
What is the key difference between options and futures/forward contracts?
What is the key difference between options and futures/forward contracts?
In a call option, when does an investor buy a call option?
In a call option, when does an investor buy a call option?
What is the relationship between the buyer and seller in options contracts?
What is the relationship between the buyer and seller in options contracts?
In a forward contract, when does the settlement typically occur?
In a forward contract, when does the settlement typically occur?
What is the main difference between futures and forwards contracts?
What is the main difference between futures and forwards contracts?
What is the pay-off from a long position in a futures contract based on?
What is the pay-off from a long position in a futures contract based on?
What does an options contract provide the buyer with?
What does an options contract provide the buyer with?
