Finance And Accounting

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.
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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
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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
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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
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Question: How is risk measured?
A
By classifying it into one of three levels of risk

B
Individually, each investor assesses their own risk tolerance level

C
As a letter; a,b,c or d

D
Someone else assesses your risk level

Note: Answer not sure
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Question: How does the "Iron Condor" technique limit the downside?
A
The shorted options all have the same strike prices.

B
It is another term for short selling stock.

C
The shorted options have different strike prices, creating a stagger.

D
It involves selling calls while buying calls at the same time.

Note: Answer not sure
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Question: What is candlesticking?
A
Selling stock options without owning the underlying stock

B
Short selling stock

C
A charting technique which shows price movements over time indicating the high and the low daily

D
Owning several options of the same company

Note: Answer not sure
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Question: Which of the following is the most profitable?
A
Deep in the money call options

B
Deep out of the money call options

C
Slightly in the money call options

D
Slightly out of the money call options

Note: Answer not sure
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Question: Why would someone sell call options on a security they own?
A
Because they believe the price will rise

B
Because they don't really own the security

C
Because they are writing naked calls

D
Because they believe the security price will fall, creating profit from the calls

Note: Answer not sure
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Question: Which of the following situations has the least risk?
A
Short selling stock

B
Selling naked put options

C
Selling naked call options

D
Selling covered call options

Note: Answer not sure
1. Report

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Question: What happens when a trader uses a straddle?

Question: What is the purpose of candlestick charting?

Question: Why would an options trader want to create various portfolios?

Question: What is the primary goal of technical analysis?

Question: How is risk measured?

Question: How does the "Iron Condor" technique limit the downside?

Question: What is candlesticking?

Question: Which of the following is the most profitable?

Question: Why would someone sell call options on a security they own?

Question: Which of the following situations has the least risk?