WorksheetsOptions Review
Total questions: 10
Worksheet time: 5mins
Let’s say a trader bought a call option on stock XYZ with a strike price of 54, for $2 when XYZ was trading at $53. XYZ is now trading at $55.50. How much intrinsic value does this option have?
$1.00
$1.50
$2.00
$2.50
True or False:
The options contract does not specify the strike price.
True
False
An option has an $85 strike price, a $2.05 cost for the buyer (not including commissions and fees), and it expires August 15. What is the price of the option?
$85
$205
$2,005
$2.05
Let’s say a trader buys a call option on XYZ with a strike price of $32 and an expiration of 30 days. If XYZ is currently trading at $35, at what price does the trader have the right to buy XYZ?
$30
$32
$20
$15
If you buy an option contract, you have to hold it until expiration
True
False
Which of the following needs to increase when I am a buyer of an Option?
Extrinsic Value
Intrinsic Value
How should I select my strike price when trading options?
Stop Market
Current Price
Above current price
My exit target
What should I do If the cost of the contract is larger than my risk tolerance?
Shorter Expiration Date
Select Out the Money
Trade Shares
This indicator will likely let me know if the premium pricing is inflated
Strike Price
Expiration Date
Extrinsic Value
Intrinsic Value
True or False:
I should hold the contract until the expiration to breakeven.
True
False
