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Which of the following is NOT traded by the CBOE?
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Weeklys
Monthlys
Binary options
DOOM options
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- Explain the following Options traded on the Chicago Board Options Exchange: a) AstraZ Nov 340 call b) IBM Aug 160 putWhich of the following is an example of the primary markets? Select one:Amman Stock ExchangeMuscat Stock ExchangeNone of the answers are correctForeign exchange marketThe Options Clearing Corporation is responsible for all of the following EXCEPT: A standardization of listed options contracts B setting the premium of listed options contracts C issuance of listed options contracts D assignment of exercises of listed options contracts
- Like a share of stock, EFTs trade _____ A) on an exchange B) once per day C) at an average price and depending upon the broker used may be subject to a _____ A) front end load fee B) back end loan fee C) brokerage commissionWhat is the primary distinction between exchange-listed and over-the-counter options? Which option strategy uses both markets?You are given the following information concerning the trades made on a particular stock. Calculate the money flow for the stock based on these trades. (Leave no cells blank - be certain to enter "0" wherever required. A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Price Volume $ 59.97 59.99 3,400 59.97 2,900 59.96 3,300 58.97 3,450 60.20 4,200 60.11 4,500
- State whether the following statements are true or false. In each case, provide a brief explanation. a. By observing the prices of call and put options on a stock, one can recover an estimate of the expected stock return. b. An investor would like to purchase a European call option on an underlying stock index with a strike price of 210 and a time to maturity of 3 months, but this option is not actively traded. However, two otherwise identical call options are traded with strike prices of 200 and 220 respectively, hence the investor can replicate a call with a strike price of 210 by holding a static position in the two traded calls. c. In a binomial world, if a stock is more likely to go up in price than to go down, an increase in volatility would increase the price of a call option and reduce the price of a put option. Note that a static position is a position that is chosen initially and not rebalanced through time.Which one of the following can be sold prior to expiration? Group of answer choices Call options can be sold prior to expiration but put options cannot. Put options can be sold prior to expiration but call options cannot. No option can be sold prior to expiration. Both American and European options can be sold prior to expiration.Assume that you have been given the following information on Purcell Corporations call options: According to the Black-Scholes option pricing model, what is the options value?
- Of the following four call options that can be purchased on a stock, which would you expect to have the lowest price? A. September call; $85 exercise price B. September call; $80 exercise price C. December call; $85 exercise price D. December call; $80 exercise priceHere is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid Ask 46.54 46.89 a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) c. Suppose you have submitted a limit order to sell at $47.15. What will happen? The trade will not be executed The trade will be executed d. Suppose you have submitted a limit order to buy at $46.76. What will happen? The trade will not be executed The trade will be executedThe following table shows the options quotation in U.S. dollars for Big Walnut Nut Company for June 30 of this year. Option Closing Price Strike Price Calls–Last Quote September Puts–Last Quote September 1 $43.00 $47.00 $2.00 $2.20 2 $43.00 $41.00 $3.00 $1.20 3 $43.00 $49.00 $1.60 $2.60 If you could exercise the options listed only on the expiration date (the third Friday of September), then these options would be ____ options. Assuming that the options listed are American options, on June 30, which of the call options for Big Walnut Nut Company listed in the table is in-the-money? Option 2 Option 1 Option 3
