The option price is also referred to as the
a. strike
b. spread
c. premium
d. fee
e. none of the above
Answer: C
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THE STRUCTURE OF OPTIONS MARKETS
- One of the advantages of forward markets is
- "Wal-Mart calls" are an example of
- Option traders incur which of the following types of costs?
- What amount must a call writer pay if a cash-settled index call is exercised?
- An order that specifies a maximum price to pay if buying is a
- Who determines whether options on a company's stock will be listed?
- In which city did organized option markets originate?
- Which of the following index options is the most widely traded?
- All of the following are forms of options except
- A writer selected to exercise an option is said to be
- The exchange with the largest share of the options market is the
- Which of the following are long-term options?
- An investor who exercises a call option on an index must
- Index options trading on organized exchanges expire according to which of the following cycles?
- Which type of trader legitimately practices dual trading?
- An investor who owns a call option can close out the position by any of the following types of transactions except
- The exercise price can be set at any desired level on each of the following types of options except
- Which of the following is a legitimate type of option order on the exchange?
- If the market maker will buy at 4 and sell at 4.50, the bid-ask spread is
- Which one of the following is not a type of transaction cost in options trading?
- The advantages of the over-the-counter options market include all of the following except
- The number of options acquired when one contract is purchased on an exchange is
- Organized options markets are different from over-the-counter options markets for all of the following reasons except
- A put option in which the stock price is $60 and the exercise price is $65 is said to be
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