important things to memorize

Question 1

What is a futures contract?

Answer 1

Futures contracts provide a way for participants to buy or sell standardized assets at a certain time with the protection of a futures exchange. The terms are standardized and the exchange carries counterparty risk. For a buyer, the exchange acts as seller. For a seller, the exchange acts as buyer.

Question 2

What is dividend risk?

Answer 2

Early assignment of short call options due to upcoming dividend

Question 3

index options follow this style of exercise

Answer 3

most follow european style

Question 4

how are index options settled?

Answer 4

cash

Question 5

for spx index options what is the multiplier?

Answer 5

100

Question 6

what is the settlement symbol for SPX

Answer 6

SET

Question 7

index options general trading hours

Answer 7

830 to 3:15

Question 8

spx monthly options are settled

Answer 8

AM

Question 9

spx weekly options are settled

Answer 9

PM

Question 10

for spx weekly options pm, last day to trade hours

Answer 10

until 3pm

Question 11

for spx monthy options am last day to trade hours

Answer 11

until 3:15pm

Question 12

how to find margin balance on tos

Answer 12

cash and sweep - short balance