1. Question: What is a "strangle"?

    A
    Selling only call options

    B
    Buying or selling a put and a call with different strike prices

    C
    Buying a call and selling a put

    D
    Buying two call options at different strike prices

    Note: Answer not sure
    1. Report
  2. Question: What skills would technical analysis use primarily?

    A
    Scientific

    B
    Mathematical

    C
    Research

    D
    English

    Note: Answer not sure
    1. Report
  3. Question: Which of the following is an assumption made by a technical analyst?

    A
    The stock price does not reflect current market information.

    B
    No one else has recognized the stock as a good investment.

    C
    All stocks will increase in the long run.

    D
    The stock price already reflects all news and news events and they do not impact a stock's price.

    Note: Answer not sure
    1. Report
  4. Question: What is meant "short selling"?

    A
    Selling less stock than is currently owned

    B
    Selling a stock without owning it, with the expectation of purchasing the stock at a later date at a cheaper price

    C
    Buying call options on a security

    D
    Buying put options on a security

    Note: Answer not sure
    1. Report
  5. Question: What would an investor using the Black Scholes model be doing?

    A
    Looking for arbitrage opportunities

    B
    Looking to sell call options

    C
    Trying to find brokerages that charge lower commission for their transactions

    D
    Calculating the implied price of an option based on several factors

    Note: Answer not sure
    1. Report
  6. Question: What is the relationship between fundamental and technical analyses?

    A
    They are mutually exclusive, and an analyst would use one or the other, never both.

    B
    They must both be used together.

    C
    They can both be used to complement each other, but not together.

    D
    They are very exclusive techniques that should both be avoided.

    Note: Answer not sure
    1. Report
  7. Question: What happens when a trader uses a straddle?

    A
    They buy two call options at different prices.

    B
    They buy two put options at different prices.

    C
    They buy the stock and a call option.

    D
    They buy a call and a put option at the same strike price.

    Note: They buy a call and a put option at the same strike price.
    1. Report
  8. Question: What is the purpose of candlestick charting?

    A
    It tells the user exactly when to buy.

    B
    It gives the trader something to do in their spare time.

    C
    It is required in order to trade stock options.

    D
    A lot of price information such as open, close, high and low can be relayed in a graph.

    Note: Answer not sure
    1. Report
  9. Question: Why would an options trader want to create various portfolios?

    A
    Because each portfolio could be taxed separately

    B
    Because each portfolio could contain one stock

    C
    Because each portfolio would be set up to meet specific goals

    D
    Because they can sell all the stocks within a portfolio more easily

    Note: Answer not sure
    1. Report
  10. Question: What is the primary goal of technical analysis?

    A
    Identifying trends to predict near term price movements

    B
    Helping build a retirement plan

    C
    Identifying stocks with potential for large increases in the next two years

    D
    Finding indications of interest rate direction

    Note: Answer not sure
    1. Report
Copyright © 2024. Powered by Intellect Software Ltd