Options Bootcamp Assignment

Session 6

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Single choice question
01.Which of the following accurately describes the core payoff characteristics of selling a put option?
A.The maximum profit is the entire price difference from the stock's upside, and the loss is limited.
B.The maximum profit is the total premium received, and the maximum loss is (strike price - premium) × the contract multiplier.
C.The profit is positively correlated with the extent of the stock's decline, with no upper limit.
D.The higher the breakeven point, the larger the profit margin for the seller.
Single choice question
02.You sell one Alibaba-W (9988.HK) put option(500shares/contract) with a HKD 125 strike, receiving HKD 0.3 per share. At expiration, the stock is HKD 150. What is the premium income from this trade?
A.HKD $0.3
B.HKD $150
C.HKD $1500
D.HKD $15
Single choice question
03.Assume TSLA trades at $340. You sell one $320 put and collect a $5 premium. If assigned below $320 at expiration, what is your cost basis per share for the 100 shares?
A.$340
B.$320
C.$315
D.$310
Single choice question
04.TSLA is at $367. You plan to sell a put only to collect premium and avoid assignment. Based on practical trading, which strike price is most appropriate?
A.$370 with Delta 0.6
B.$367 with Delta 0.5
C.$360 with Delta 0.35
D.$340 with Delta 0.29
Single choice question
05.TSLA trades at $367. You’re long-term bullish and want to sell puts to earn premium while waiting to buy at a lower price. What contract parameters are most suitable?
A.Expires in 8 days, strike price $340
B.Expires in 50 days, strike price $305
C.Expires in 35 days, strike price $360
D.Expires in 8 days, strike price $367