Question

25. The price at which the holder of an option can buy (call) or sell (put) the UV

1. bargain price
2. discount price
3. strike price
4. special price

26.   Assignment of a short put results in a

1. long position in UV
2. short position in UV
3. prone position in trading account
4. loss of capital

27.   Exercising a call results in a

1. renouncing rights to long position in UV
2. renouncing rights to short position in UV
3. short position in UV at strike price
4. long position in UV at strike price

28. At the expiration date an options contract

1. ceases to exist
2. rolls over to the next expiration cycle
3. is rerouted to the next year
4. none of the above

29. Options contracts on the same class, strike price & expiration date

1. series
2. playoffs
3. playdowns
4. divisions

30. Option contract that gives the holder the right to short UV at a specific price within a specified period of time is a

1. call
2. put
3. mall
4. gut

31. Option contract that gives the holder the right to purchase UV at a specific price within a specified period of time

1. call
2. put
3. mall
4. gut

32. An order to immediately buy or sell security at best possible price

1. limit
2. market
3. contingency
4. roll back

33. An order to immediately buy or sell security at a specific price

1. limit
2. market
3. contingency
4. roll back

34. Market order that allows broker to use discretion as to price and time of execution

1. market on close (MOC)
2. market at noon (MAN)
3. market not held (MNH)
4. none of the above

35. What is the maximum possible price willing to be paid?

1. bid
2. ask
3. offer
4. both b and c

36. What is the minimum possible price willing to be sold?

1. bid
2. ask
3. offer
4. both b and c

37. What is the total number of shares traded in one day?

1. accumulation
2. acceleration
3. volume
4. open interest

38. What is the total number of open orders not yet liquidated?

1. accumulation
2. acceleration
3. volume
4. open interest

39. What is the highest possible price willing to be paid in conjunction with the lowest possible price willing to be sold?

1. price auction
2. bid/ask spread
3. ask/bid spread
4. lottery

40. An illiquid UV will have ___________?

1. low open interest
2. low volume
3. high volume
4. both a & b

41. A liquid UV will have ______________?

1. high volume
2. high open interest
3. narrow bid/ask spread
4. all of the above

42. What type of order initiates a long position?

1. Buy to Open (BTO)
2. Sell to Open (STO)
3. Buy to Close (BTC)
4. Sell to Close (STC)

43. What type of order closes out an existing long position?

1. BTO
2. STO
3. BTC
4. STC

Answer 1

1.
strike price

Assignment of a short put results in a
long position in UV

Exercising a call results in a
long position in UV at strike price

At the expiration date an options contract
ceases to exist

Options contracts on the same class, strike price & expiration date
series

Option contract that gives the holder the right to short UV at a specific price within a specified period of time is a
put

Option contract that gives the holder the right to purchase UV at a specific price within a specified period of time
call

An order to immediately buy or sell security at best possible price
market

An order to immediately buy or sell security at a specific price
limit

Market order that allows broker to use discretion as to price and time of execution?

What is the maximum possible price willing to be paid?

both b and c

What is the minimum possible price willing to be sold?
bid

What is the total number of shares traded in one day?
volume

What is the total number of open orders not yet liquidated?
open interest

What is the highest possible price willing to be paid in conjunction with the lowest possible price willing to be sold?
bid/ask spread

An illiquid UV will have ___________?
both a & b

A liquid UV will have ______________?
all of the above

What type of order initiates a long position?

What type of order closes out an existing long position?