Question

25. What type of order initiates a short position?

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

26. What type of order closes out an existing short position?

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

27.   What is the type of order where a pair of orders is entered and one is canceled when the other is filled?

1. OCO
2. IOC
3. AON
4. FOK

28. An order that is automatically canceled at the close of the trading day is a ______ order.

1. GTC
2. stop loss
3. stop limit
4. day

29. An order that is automatically renewed every trading day until it has been canceled is a ____ order.

1. GTC
2. stop loss
3. stop limit
4. day

30.   An IOC order is a ______________________?

1. limit order that needs to be filled immediately in its entirety
2. limit order that needs to be filled immediately for any portion
3. limit order that needs to be filled entirely at the soonest possible time
4. none of the above

31. An AON order is a _______________________?

1. limit order that needs to be filled immediately in its entirety
2. limit order that needs to be filled immediately for any portion
3. limit order that needs to be filled entirely at the soonest possible time
4. none of the above

32. A FOK order is a _________________________?

1. limit order that need to be filled immediately in its entirety
2. limit order that needs to be filled immediately for any portion
3. limit order that needs to be filled entirely at the soonest possible time
4. none of the above

33. A stop loss order is ________________.

1. placed above the market for a buy order
2. placed below the market for a sell order
3. becomes a market order when a specific price is traded at or through
4. all of the above

34. A stop limit order is ____________________.

1. placed above the market for a buy order
2. placed below the market for a sell order
3. becomes a limit order when a specific price is traded at or through
4. all of the above

35. Edward O. Thorp’s book developed a crude pricing methodology for __________.

1. writs
2. warrants
3. subpoenas
4. stays

36.   The first options pricing model was developed by ______________.

1. Merton & Scholes
2. Black & Scholes
3. Thorp & Black
4. Gilbert & Sullivan

37. The 1973 Nobel Prize was awarded to ________________.

1. Merton & Scholes
2. Black & Scholes
3. Thorp & Black
4. Gilbert & Sullivan

38. The first exchange to list options was the _______________.

1. NYSE
2. CME
3. AMEX
4. CBOE

39. One call option on equities represents _______________.

1. 1 share of long stock
2. 100 shares of long stock
3. 1 share of short stock
4. 100 shares of short stock

40. One put option on an ETF represents

1. 1 share of long etf
2. 100 shares of long etf
3. 1 share of short etf
4. 100 shares of short etf

41. One call option on futures represents

1. 1 long futures contract
2. 100 long futures contracts
3. 1 short futures contract
4. 100 short futures contracts

42. One put option on futures represents

1. 1 long futures contract
2. 100 long futures contracts
3. 1 short futures contract
4. 100 short futures contracts

43. When a trader buys 1,000 shares of stock and then sells 1,500 shares of the same stock they are

1. flat
2. net long 1,000 shares
3. net short 1,500 shares
4. net short 500 shares

44. When a trader shorts 2,000 shares of stock and then buys 3,000 shares of the same stock they are

1. flat
2. net long 1,000 shares
3. net short 1,500 shares
4. net short 500 shares

45. Options that can only be exercised at expiration are

1. Peruvian style options
2. British style options
3. European style options
4. American style options

46. Options that can be exercised at any time are

1. Peruvian style options
2. British style options
3. European style options
4. American style options

47. One advantage of American style options is

1. hearing the news first
2. that they don’t use the metric system
3. dividend plays
4. better stocks to trade on

48. A trader buys 2,000 shares of stock and then sells 2,000 shares of the same stock they are

1. flat
2. net long 2,000 shares
3. net short 2,000 shares
4. none of the above

49. An SOS order is a

1. discretionary order
2. contingency order
3. ballistic order
4. controversial order

Answer 1

A stop limit order is ____________________.
all of the above

Edward O. Thorp’s book developed a crude pricing methodology for __________.
warrants

The first options pricing model was developed by ______________.
Black & Scholes

The 1973 Nobel Prize was awarded to ________________.
Black & Scholes

The first exchange to list options was the _______________.
CBOE

One call option on equities represents _______________.
100 shares of long stock

One put option on an ETF represents
100 shares of short etf

One call option on futures represents
100 long futures contracts

One put option on futures represents
100 short futures contracts

When a trader buys 1,000 shares of stock and then sells 1,500 shares of the same stock they are
net short 500 shares

When a trader shorts 2,000 shares of stock and then buys 3,000 shares of the same stock they are
net long 1,000 shares

Options that can only be exercised at expiration are
European style options

Options that can be exercised at any time are
American style options

One advantage of American style options is
dividend plays

A trader buys 2,000 shares of stock and then sells 2,000 shares of the same stock they are
flat