Finance And Accounting

Question: Why would an investor not utilize an options trading strategy?
A
Because they cost money

B
Because of the belief that they do not work, and it is a wasted effort

C
Because not enough data is available

D
Because they are only for the wealthy

Note: Answer not sure
1. Report
Question: Which of the following would help protect against downside risk?
A
Only trading call options

B
Only trading put options

C
Always selling options instead of buying

D
Placing a limit order

Note: Answer not sure
1. Report
Question: What is meant by "long" in a stock or option?
A
Owning an excessive amount of shares

B
Selling stock options on a security

C
Intention to hold a security for a long period of time

D
Selling a stock without owning it

Note: Answer not sure
1. Report
Question: What is the "expiration date"?
A
The date on which the trader's license expires

B
The date on which a broker's account expires

C
The date on which the underlying stock no longer remains tradable

D
The date on which the options contract expires and can no longer be executed or traded

Note: Answer not sure
1. Report
Question: Why is it important to manage risk when trading stock options?
A
Because it is a good general policy

B
Because it guarantees no losses

C
Because it is required by tax law

D
Because of the risky nature of stock options

Note: Answer not sure
1. Report
Question: What would an investor with a large risk tolerance level most likely do?
A
Sell options of a security of which they do not own the underlying stock

B
Buy both call and put options which help reduce the overall risk

C
Sell call options on a security of which they own the underlying stock

D
Do nothing and invest in foreign exchange

Note: Answer not sure
1. Report
Question: What does the Monte Carlo method of pricing options attempt to do?
A
Give the options trader a specific guideline on what to buy

B
Tell an options trader what market to trade in

C
Tell the options trader if he should sell puts

D
Calculate a price based on weighting potential outcomes

Note: Answer not sure
1. Report
Question: What is the offset to limiting downside?
A
Unlimited profits

B
Often limited profits

C
No profits

D
Risky tax implications

Note: Answer not sure
1. Report
Question: What does heavy volume trading indicate?
A
That the expiration date is near

B
That the current market price is wrong

C
That insiders know something no one else does

D
Typically that news has come out regarding the underlying stock

Note: Answer not sure
1. Report
Question: Which of the following would technical analysis include?
A
Company financials

B
Market statistics

C
Stock pricing

D
Currency

Note: Answer not sure
1. Report

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Question: Why would an investor not utilize an options trading strategy?

Question: Which of the following would help protect against downside risk?

Question: What is meant by "long" in a stock or option?

Question: What is the "expiration date"?

Question: Why is it important to manage risk when trading stock options?

Question: What would an investor with a large risk tolerance level most likely do?

Question: What does the Monte Carlo method of pricing options attempt to do?

Question: What is the offset to limiting downside?

Question: What does heavy volume trading indicate?

Question: Which of the following would technical analysis include?