Options Trading, Finance And Accounting

Question: Which of the following would be a way to limit one's potential losses?
A
Trading risky securities with margin

B
Short selling stock

C
Buying out of the money call options with expirations in the near future

D
Not using margin to trade with

Note: Answer not sure
1. Report
Question: Which of the following is an example of options used to mitigate risk?
A
Buying a put option for a stock which is currently owned

B
Buying a call option for a stock which is currently owned

C
Short selling stocks

D
Selling put options for a stock which is currently owned

Note: Answer not sure
1. Report
Question: Which of the following would most likely be a way to classify various portfolios?
A
By the tax laws which apply

B
By the number of shares outstanding

C
By the time the securities were purchased

D
By the time horizon of the investments contained within it

Note: Answer not sure
1. Report
Question: Which of the following would not be an example of managing risk?
A
Buying both call and put options on a variety of stocks

B
Applying trading strategies

C
Buying only call options on one stock

D
Selling calls on a security which is owned

Note: Answer not sure
1. Report
Question: How often should a trader revaluate the holdings in their portfolios?
A
Daily

B
Continuously, but not daily

C
Yearly

D
Never

Note: Answer not sure
1. Report
Question: What factors does technical analysis primarily rely on?
A
Financial reports

B
Management reports

C
Past price and volume

D
Market indicators

Note: Answer not sure
1. Report
Question: What is meant by a "bull market"?
A
When expectations are that the market will fall

B
When there is a temporary increase in stock prices

C
When there is a temporary decrease in stock prices

D
When expectations are that the market will rise

Note: Answer not sure
1. Report
Question: What is an "option spread"?
A
The same as butterfly trading strategy

B
Buying and selling options of two different companies

C
Buying and selling stock options at different strike prices for the same security

D
Selling call options on securities

Note: Answer not sure
1. Report
Question: What is a "put"?
A
Selling by an options contract holder of their contract

B
An options contract which gives the holder the right to sell the underlying stock at a predetermined price

C
Selling by a stock holder of their stock in order to buy options

D
An options contract which gives the holder the right to buy the underlying stock at a predetermined price

Note: Answer not sure
1. Report
Question: What is the legal requirement regarding portfolios?
A
Investors are required by tax law to classify their investments into portfolios.

B
Investors are required by the SEC to classify their investments into portfolios.

C
Required by accounting laws

D
There is no legal requirement to create portfolios.

Note: Answer not sure
1. Report

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Question: Which of the following would be a way to limit one's potential losses?

Question: Which of the following is an example of options used to mitigate risk?

Question: Which of the following would most likely be a way to classify various portfolios?

Question: Which of the following would not be an example of managing risk?

Question: How often should a trader revaluate the holdings in their portfolios?

Question: What factors does technical analysis primarily rely on?

Question: What is meant by a "bull market"?

Question: What is an "option spread"?

Question: What is a "put"?

Question: What is the legal requirement regarding portfolios?