Options

Question 1

Two Types of Options

Answer 1

Calls & Puts

Question 2

Call Option

Answer 2

The right to buy or to ‘call’ the stock from the option seller at a specific price for a certain period of time. Obligates the seller to sell the stock to the buyer at that specific price at a certain period of time.

Question 3

Put Option

Answer 3

Gives the buyer the right to sell to the seller at a specific price for a certain period of time. Obligates the seller to buy the stock from the buyer at that specific price at a certain period of time.

Question 4

Option Class

Answer 4

All options of the same type of the same underlying stock.

Question 5

Option Series

Answer 5

Consists only of option of the same class with the same exercise price and expiration month. The most specific classification.

Question 6

Sellers of Call

Answer 6

Bearish

Question 7

Buyer of Call

Answer 7

Bullish

Question 8

Buyer of Put

Answer 8

Bearish

Question 9

Seller of Put

Answer 9

Bullish