Can anyone please help me with a couple of the questions on an ETO quiz. I've tried it and it is saying I have got the answers wrong. I thought after attending a 3 day workshop on them I would know what the answers were.
1) If the price of NAB is rising call options over NAB shares will fall in value? True
2) If I have bought a call option contract I can take my profit at any time by selling an identical option contract? True
3) The most you can lose when you buy a put option is the underlying shares price? False
4) If I sell a NAB option I can close it out by buying back a BHP option? False
5) Buying a put option allows me to protect my shareholding against loss? True
6) Which of the following is not a key factor in the price of an option?
Time To Expiry
Volatility
Interest rates
The value of the Australian Dollar against the US Dollar
Underlying share price
I said the value of the Australian Dollar against the US Dollar
7) Put Option gives the buyer of the option the right to sell the stock to the seller of the Put option at which price?
Underlying Share Price
Share Price at the time of buying the Put option
Exercise Price
I said Exercise price
8) If one option contract in ZYX represents 100 underlying shares, and the options exercise price is $2.00, the cost of exercising the option (excluding brokerage and fees) would be? I said $200
