In Which of the Following Ways Are Calls and Put

question 16

Multiple Choice

In which of the following ways are calls and put options used by the options investor in purchase and sales transaction?

• A) A long call allows the investor to purchase the underlying security at the specified strike price after the option expiration date II. Along put allows the investor to sell the underlying security at the specified strike price until the option expiration date III. An investor who is short a call is at the underlying security at the specified strike price if a call option is exercised after the option expiration date IV. An investor who is short a put is obligated to buy the underlying security at the specified strike price if a put option is exercised by the option expiration date
• B) I and II only
• C) I and III only
• D) II and III only
• E) II and IV only

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Definitions:

Sex Differences

The biologically based distinctions between males and females, often related to reproductive functions but also encompassing other physiological differences.

Gender Differences

The distinctions in characteristics and behaviors typically associated with being male or female, influenced by biological, social, and cultural factors.

Cisgender

A term describing individuals whose gender identity matches the sex they were assigned at birth.

Gender Identity

An individual’s personal sense of their own gender, which may or may not correspond with their birth sex.