5 Questions
Which of the following best describes a call option?
An option that gives the holder the right to buy an underlying asset at a specified price within a specific time period
Which of the following best describes a put option?
An option that gives the holder the right to sell an underlying asset at a specified price within a specific time period
What is the maximum potential loss for a buyer of a call option?
The premium paid for the option
What is the maximum potential loss for a buyer of a put option?
The premium paid for the option
Which of the following is true about short selling?
It involves selling a security that the seller does not own
Learn about options trading with calls and puts in this quiz. Get an overview, examples, and insights on trading long and short positions.
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