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Questions and Answers
What is the strike price?
What is the expiration date?
What is the size of an option contract?
Study Notes
- Options are contracts that give the holder the right, but not the obligation, to buy or sell a stock at a set price on or before a certain date.
- The strike price is the price at which the option can be exercised.
- The expiration date is the date on which the option expires.
- The size of an option contract is equal to the number of shares of the underlying stock that the option represents.
- The premium is the price paid for an option, which is determined by multiplying the strike price by the number of contracts bought.
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Description
Test your knowledge about options trading with this quiz covering important concepts such as strike price, expiration date, contract size, and premium calculation.
