Final exam

Which statement about options is not correct? (multiple answers are possible)

What is a call option? (multiple answers are possible)

What is not correct? (multiple answers are possible)

What are the most important reasons to invest in options? (multiple answers are possible)

What is a put option? (multiple answers are possible)

What is the strike price of an option?

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You are considering to sell 7 put options March 2024 on the share Amazon with a strike price 2500,00. At the moment we are in 2022.

Once you have sold the put option how would this position look like in your investment portfolio?

If a share is priced at 15, the put option with a strike price of  11 is?

The option is….

If a share is priced at 11, the call option 8 is?

The option is ….

The price of a share ABC is 20,00, you own a call the call option ABC with the strike price 19,80. You paid a premium of 5 EUR. 

This option is….

If share XYZ has a price in the market of 100, you hold a call option XYZ with a strike price of 80 for which you paid a premium of 25 EUR. 

This option is….

You hold a put option on the S&P500 with a strike price of 4000. The index has a price of 3900, and you decide to exercise your right.

Is this possible?

You hold 5 bought long call options on share ABC with a strike price of 725. On the expiry date the share is priced at 710. 

How much are your positions worth?

You hold 5 bought long put options on share XYZ with a strike price of 700. On the expiry date the share is priced at 690.

How much are your put options worth on the expiry date?

What are the components of the time value of an option? (multiple answers are possible)

Which component of the option price does not indicate the monetary value of the option?

You bought a put option with a strike price of 19,00 on share XYZ. On the expiry date, the share is worth 12,00.

What is the price of the option on the market? 

How much time/expectation value has a call option with a strike price at 12,00 a bid price of 3,34 and a share price of 13,10?

If the strike price of a call option is 8 and the underlying value is trading at 18.

What is the intrinsic value of this option?

The call option with a strike price at 13,00 a bid price of 4,34 and a share price of 14,00.

How much intrinsic value has this call option?

What is time value? Which statement is true?

If interest rates are going up, what will happen, in general, with the premium of call options?

If a company has announced a payment of dividend, this is initially (before the payment date) positive for the price of….?

You hold a bought call option of stock XYZ with the strike price of 32,00.

The price of stock XYZ goes from 39,00 to 36,00. What happens with the price of the call option?

When the volatility increases my options will become….?

The implied volatility is….?

If you buy 2 call options with a strike 15,00 for a price of 2,00. 

What is your maximum risk? 

Which statement is false? 

What could be a reason to sell covered call options? (multiple answers are possible)

You are looking to sell shares for a higher price in the future. 

What strategy can you choose selling options? 

What are two important reasons for buying put options? (multiple answers are possible)

What is negative for the price development of a bought put option

What does it mean when you sell a put option on shares? 

What is important to take in consideration when you sell put options? 

You are looking to buy a call option, which option holds more value?