[Options Bootcamp] Lesson 2 After-Class Check-in

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Single choice question
01.If you sell a put option (Sell Put), which of the following statements about rights and obligations is correct?
A.You have the obligation to sell a certain number of shares at the strike price in the future.
B.You have the obligation to buy a certain number of shares at the strike price in the future.
C.You have the right to sell a certain number of shares at the strike price in the future.
Single choice question
02.You bought a call option (Buy Call). At expiration, the stock price is below the strike price, and you take no action. What will happen?
A.The option is automatically exercised, and you buy the stock at the strike price.
B.The option expires worthless, and you lose the premium you paid.
C.The broker will automatically close the position for a profit.
Single choice question
03.Which of the following statements about the time value of options is correct?
A.The higher the strike price, the greater the time value.
B.The higher the volatility, the smaller the time value.
C.The longer the time to expiration, the greater the time value.
Single choice question
04.Regarding the handling of an In-the-Money (ITM) stock call option at expiration, which of the following is correct?
A.It automatically expires worthless.
B.The broker will settle the difference in cash to you.
C.If you have sufficient funds and take no action, it will be automatically exercised, and you will buy the underlying stock at the strike price.
Single choice question
05.Which of the following descriptions of the relationship between implied volatility and option prices is correct?
A.The higher the implied volatility, the more expensive the option price.
B.The higher the implied volatility, the cheaper the option price.
C.Implied volatility is unrelated to option prices.