Finance And Accounting

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
Question: What is the primary method to mitigate risk?
A
Diversifying investment holdings

B
Day trading

C
Purchasing only tech stocks

D
Purchasing stock in the company you work for

Note: Answer not sure
1. Report
Question: What would be the risk tolerance level of a retired government worker in general?
A
High

B
Moderate

C
Varies indefinitely

D
Low

Note: Answer not sure
1. Report
Question: When is the straddle trading strategy appropriate?
A
When the price may move by a small amount

B
When an investor believes there will be a large decrease in the stock price

C
When an investor believes there will be a large increase in the stock price

D
When an investor believes there will be a large stock price movement, but does not know in which direction

Note: Answer not sure
1. Report
Question: What is a "call"?
A
An options contract which gives the holder the right to buy a stock at a predetermined price

B
A stock which is long

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

D
Placing an order to buy options

Note: Answer not sure
1. Report
Question: Would a person who actively buys and sells options contracts be considered an investor?
A
No, they are a commission broker.

B
No, they are a trader looking for short term gains.

C
Yes, they are investing their money.

D
Yes, they are an options investor.

Note: Answer not sure
1. Report
Question: What is meant by a "butterfly" trading strategy?
A
Selling two options either put or call

B
Complex trading strategy involving buying two calls and selling two calls

C
Buying two put options at different strike prices

D
Selling only call options on stock you own

Note: Answer not sure
1. Report

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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?

Question: What is the primary method to mitigate risk?

Question: What would be the risk tolerance level of a retired government worker in general?

Question: When is the straddle trading strategy appropriate?

Question: What is a "call"?

Question: Would a person who actively buys and sells options contracts be considered an investor?

Question: What is meant by a "butterfly" trading strategy?