week 2 - derivatives

Question 1

what is a call option

Answer 1

right to buy an asset at a specified price on or before a specified expiration date

Question 2

what is a put option

Answer 2

• Put option: right to sell an asset at a specified exercise price
  on or before a specified expiration date

Question 3

bought call options give the _________

Answer 3

buyer the right to buy a specific security

Question 4

Sold call options oblige the __________

Answer 4

seller to deliver stock if exercised by the buyer

Question 5

Bought put options give the ________

Answer 5

buyer the right to sell

Question 6

Sold put options oblige the _________

Answer 6

seller to buy the stock if exercised by the buyer