Options Trading, Finance And Accounting

Question: Why are younger people more apt to take on riskier investments?
A
Because they have a longer time horizon to allow for the risky investments to increase over time, and are immune to the short term changes

B
Because they do not know the value of money in the long run

C
Because they have less knowledge and do not know the potential for loss

D
Because there are short term gains to be made

Note: Answer not sure
1. Report
Question: Why is it important for an investor to know their risk tolerance level before trading options and investing in general?
A
Because it is required by law

B
Because it helps in tax planning

C
Because it helps them decide which industry to invest in

D
Because they can match their risk tolerance level with the types of stocks they are purchasing

Note: Answer not sure
1. Report
Question: What is the ideal number of portfolios for an experienced trader?
A
1

B
5

C
20

D
100

Note: Answer not sure
1. Report
Question: What would an investor who is bullish most likely do?
A
Sell call options

B
Buy call options

C
Do nothing

D
Buy both calls and puts to neutralize their position

Note: Answer not sure
1. Report
Question: What is a "margin account"?
A
Borrowing money from friends to trade stocks with

B
A stock trading account which allows the holder to borrow money from the broker

C
An account used only for trading options

D
An account which can be used only for trading large cap stocks

Note: Answer not sure
1. Report
Question: Which type of analysis relies on charting?
A
Fundamental

B
Technical

C
Both Fundamental and Technical

D
Neither Fundamental nor Technical

Note: Answer not sure
1. Report
Question: How often would an active options trader perform technical analysis?
A
Once per month

B
It is an ongoing process performed during the hours after each day's activity.

C
Never. It does not apply to options.

D
Possibly weekly

Note: Answer not sure
1. Report
Question: How would an options trader use the Black Scholes pricing model as a trading strategy?
A
To look for options priced correctly

B
To look for options which are priced in the market at less than the Black Scholes price

C
To look for options which are not yet written on securities

D
To look for opportunities to sell your options at less than you bought them for

Note: Answer not sure
1. Report
Question: What is meant by a covered call?
A
Buying a stock, and selling a call at the same time

B
Buying a stock, and selling a put at the same time

C
Selling stock options on securities which are not owned

D
Buying stock options on securities which are not owned

Note: Answer not sure
1. Report
Question: What is meant by using the straddle stock trading strategy?
A
When an investor sells a call option and purchases a put option

B
When an investor purchases two call options at different prices

C
When an investor owns both call and put stock options at the same stock price

D
When an investor purchases two put options at different prices

Note: Answer not sure
1. Report

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Question: Why are younger people more apt to take on riskier investments?

Question: Why is it important for an investor to know their risk tolerance level before trading options and investing in general?

Question: What is the ideal number of portfolios for an experienced trader?

Question: What would an investor who is bullish most likely do?

Question: What is a "margin account"?

Question: Which type of analysis relies on charting?

Question: How often would an active options trader perform technical analysis?

Question: How would an options trader use the Black Scholes pricing model as a trading strategy?

Question: What is meant by a covered call?

Question: What is meant by using the straddle stock trading strategy?