A call option writer receives ___ for selling an option.Spot pricePremiumStrike PriceAcquisition priceNone of the above

In options markets, the price paid by an option buyer to the writer of the option is the:Question 1Select one:a.call price.b.premium.c.put price.d.strike price.

When a Bank sells a call option to an option buyer, the __________ of the option contract is shown as an ____________________ item in the books of the bank. Value; on balance sheet Value; off balance sheet Premium; off balance sheet Premium; on balance sheet

In option markets the price specified in the option contracts for calls and puts is called the:Question 2Select one:a.market price.b.option price.c.strike price.d.expected value.

A call option gives the holder____a.the obligation to buy somethingb.the right to sell somethingc.the right to buy somethingd.the obligation to sell somethinge.None of the Above

A ________ option is an option to purchase a specified number of shares on or before some future date at a specified price, whereas a _______ option is an option to sell a specified number of shares on or before some future date at a specified price. ______ are bought if the share is expected to rise.Question 1Select one:a.put; call; Putsb.call; put; Putsc.call; put; Callsd.put; call; Calls