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Options Basics

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

In general Call option buyer profits when

a)

Stock Price Goes up

b)

Stock Price goes Down

c)

Stock Price stays Sideways

2.

Buying a Call option is the

a)

Right to Buy

b)

Right to Sell

c)

Obligation to buy

d)

Obligation to sell

3.

Option Buyer has

a)

Limited Risk

b)

Un limited Risk

4.

Below person has the rights in the Options contract

a)

Option Buyer

b)

Option Seller

5.

Call Option Buyer is

a)

Bullish

b)

Bearish

6.

Put option Buyer is

a)

Bearish

b)

Bullish

7.

An option is a

a)

Financial Contract

b)

Company

c)

Stock

8.

Call Option is represented by

a)

CE

b)

CA

c)

CO

9.

A Call Option is In the Money When

a)

Strike Price < Current Market Price

b)

Strike Price = Current Market Price

c)

Strike Price> Current Market Price

10.

Option seller is also called

(a)  

11.

Option Price and Stock Price are the same

a)

Yes

b)

No

12.

Option expire on

a)

Monday

b)

Tuesday

c)

Wednesday

d)

Thursday

e)

Friday

13.

Each Candlestick has how many components

a)

1

b)

2

c)

3

d)

4

14.

Each Technical Chart can be viewed in multiple timeframes

a)

Yes

b)

No

15.

Options have limited time value

a)

Yes

b)

No

16.

A call buyer has a

a)

Right to sell

b)

Right to Buy

c)

Obligation to sell

d)

Obligation to buy

17.

A put seller has a

a)

Right to buy

b)

Right to sell

c)

Obligation to buy

d)

Obligation to sell

18.

A call seller has a

a)

Right to buy

b)

Right to sell

c)

Obligation to Buy

d)

Obligation to Sell

19.

Option Chain Shows

a)

Strike Price

b)

Bid Price

c)

Ask Price

d)

All of the Above

20.

The below person needs to pay only the premium amount to enter an option contract

a)

Option Buyer

b)

Option seller

21.

Price of an option contract keeps on Changing from time to time

a)

True

b)

False

22.

Option contract has

a)

Strike Price

b)

Expiry date

c)

Premium Amount

d)

Underlying Name

e)

All of the above

23.

Option seller makes money when after entering into a contract

a)

Option Price goes up

b)

Option price goes down

24.

Option Buyer makes money when after entering into a contract option price

a)

Goes up

b)

Goes down

25.

If current price of bank nifty is 20000 , a 21000 call contract is

a)

In the Money

b)

Out of the Money

c)

At the Money