Finance And Accounting

Question: What is "strike price"?
A
The price of the option

B
The price at which the trader hopes to sell the option

C
The current trading price of the option

D
The price on an options contract at which the underlying stock can be bought or sold

Note: Answer not sure
1. Report
Question: What does an options trader look for when charting?
A
Options that trade in a very narrow band

B
Options which have completely unpredictable pricing

C
Options which have broken the trend

D
Options with near term expiration dates

Note: Answer not sure
1. Report
Question: Which of the following is the least risky investment in options?
A
Selling options which expire in the following month

B
Selling options which expire one year from now

C
Selling call options with an expiration of two months from now without owning the underlying stock

D
Selling call options with an expiration of one month from now without owning the underlying stock

Note: Answer not sure
1. Report
Question: Why would a trader liquidate a portfolio?
A
Because it is illegal to hold it too long

B
To avoid being labeled as a day trader

C
Because he has made too much money already

D
Because he is no longer interested in the classification of stocks

Note: Answer not sure
1. Report
Question: Why might an options trader have portfolios based on expiration?
A
Because it makes it easier to manage

B
Because the only way to classify options is by expiration

C
Because options expiring in the near term need to be monitored more actively

D
Because it reduces the tax obligation

Note: Answer not sure
1. Report
Question: What is meant by a "bear 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 a sideways chart?
A
When a stock price varies drastically

B
When a stock price moves within a relatively narrow band

C
When a stock is losing value quickly

D
When a stock has just had news come out

Note: Answer not sure
1. Report
Question: Why would an options trader invest only in options of companies which have a history of paying dividends?
A
Because it creates an income stream

B
Because it lowers risk in investment

C
Because it creates a return on investment

D
All of these

Note: Answer not sure
1. Report
Question: Which of the following is an advantage of having multiple portfolios instead of only one?
A
It lowers the trader's tax obligations.

B
It makes it easier to trade and profit.

C
It takes away all risk.

D
Goals can be set for each portfolio and tracked separately.

Note: Answer not sure
1. Report
Question: What happens to an investment if risk is mitigated properly?
A
Nothing specific happens to any one investment; risk mitigation is an overall portfolio tool.

B
The stocks you purchase are guaranteed to increase.

C
It makes for a zero sum game, with no losses or profits.

D
Risk is assigned to someone else.

Note: Answer not sure
1. Report

First Prev 105 106 107 108 109 Next Last

Question: What is "strike price"?

Question: What does an options trader look for when charting?

Question: Which of the following is the least risky investment in options?

Question: Why would a trader liquidate a portfolio?

Question: Why might an options trader have portfolios based on expiration?

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

Question: What is a sideways chart?

Question: Why would an options trader invest only in options of companies which have a history of paying dividends?

Question: Which of the following is an advantage of having multiple portfolios instead of only one?

Question: What happens to an investment if risk is mitigated properly?