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

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

Options are contracts that give the purchasers the_______a.option to buy or sell an underlying assetb.the obligation to buy or sell an underlying assetc.the right to hold an underlying assetd.the right to switch payment streams.

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.

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

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.