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Stocks, Options, and Commodities Worksheet

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A stock gives you part ownership of a company.

a)

TRUE

b)

FALSE

2.

Dividends are extra fees you pay to your broker.

a)

TRUE

b)

FALSE

3.

A call option gives you the right to buy a stock.

a)

TRUE

b)

FALSE

4.

A put option lets you sell a stock at a set price.

a)

TRUE

b)

FALSE

5.

You always must use your option before expiration.

a)

TRUE

b)

FALSE

6.

Commodities include things like gold and oil.

a)

TRUE

b)

FALSE

7.

If a stock price moves against you, options can expire worthless.

a)

TRUE

b)

FALSE

8.

Paying a premium guarantees a profit.

a)

TRUE

b)

FALSE

9.

What is a stock?

a)

A loan to a company

b)

A piece of ownership in a company

c)

A type of candy

d)

A government bond

10.

How can you profit from stocks?

a)

Buy high, sell low

b)

Buy low, sell high

c)

Only through dividends

d)

By sleeping

11.

Which option right lets you buy?

a)

Call

b)

Put

c)

Both

d)

None

12.

Which option right lets you sell?

a)

Put

b)

Call

c)

Premium

d)

Broker

13.

What is the strike price?

a)

Cost of the option

b)

Company profit

c)

Future price you agree to buy/sell

d)

Dividend amount

14.

What is the premium?

a)

Fee you pay for an option

b)

Profit from selling a stock

c)

Dividend money

d)

Interest rate

15.

When does an option expire?

a)

On the purchase date

b)

On strike price

c)

Never

d)

On expiration date

16.

Which is a commodity?

a)

Apple stock

b)

Gold

c)

Nike shoes

d)

iPhone

17.

Which makes money if a stock goes up?

a)

Put

b)

Call

c)

Dividend

d)

Strike

18.

Which makes money if a stock goes down?

a)

Call

b)

Put

c)

Commodity

d)

Stock

19.

What should you consider before buying an option?

a)

Your favorite color

b)

Strike price, expiration, premium

c)

The weather

d)

Your teacher's name

20.

What's most important before investing?

a)

Learn risk and strategy

b)

Borrow money

c)

Invest without study

d)

Predict the lottery