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Flashcards in Options Deck (127)
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1

Regular way settlement for listed option contracts

T + 1

2

Two types of options contracts

Calls and Puts

3

All options of a single issuer with the same class, exercise price and expiration month

Series

4

Options that can be exercised any time before contract expiration

American Style

5

Options that can be exercised only on the business day preceding expiration

European style

6

Number of shares within one standard option contract

100

7

Has rights in an option contact

Holder (Buyer)

8

Has Obligations at contract exercise

Writer (Seller)

9

Right of a call buyer at contract exercise

Right to buy stock at exercise price

10

Obligation of a call writer at contract exercise

Obligation to sell stock at exercise price

11

Right of a put buyer at contract exercise

Right to sell stock at exercise price

12

Obligation of a put writer at contract exercise

Obligation to buy stock at exercise price

13

Market attitude of a call buyer

Bullish

14

Market attitude of a call writer

Bearish

15

Market attitude of a put buyer

Bearish

16

Market attitude of a put writer

Bullish

17

When a call is in the money

Market price exceeds strike price

18

When a put is in the money

Market price is less than strike price

19

Breakeven for a call

Strike price + premium

20

Breakeven for a put

Strike price - premium

21

Breakeven point for: Short ABC Jan 50 put for 3

47

22

Breakeven point for: Long ABC Jan 50 put for 3

47

23

Breakeven point for: Short ABC Jan 50 call for 3

53

24

Breakeven point for Long ABC Jan 50 call for 3

53

25

Intrinsic value for: Long XYZ Jan 50 call for 3; XYZ is 52

2

26

Intrinsic value for: Short XYZ Jan 50 call for 3; XYZ is 52

2

27

Intrinsic value for: Long XYZ Jan 50 put for 3; XYZ is 49

1

28

Intrinsic value for: Short XYZ Jan 45 call for 4; XYZ is 48

3

29

The time value of an XYZ 50 call for 3 when XYZ is 49

3

30

The time value of an XYZ 50 call for 3 when XYZ is 52

1