Call and Put Options Quiz

1. A call option gives the buyer the right to sell an asset at a specified price.

2. A put option increases in value when the price of the underlying asset rises.

3. The maximum loss for a call option buyer is the premium paid for the option.

4. A put option gives the buyer the right to sell an asset at a specified price.

5. A call option is more valuable if the price of the underlying asset decreases.

6. The buyer of a put option expects the price of the underlying asset to decrease.

7. The maximum gain from buying a put option is when the asset price goes to zero.

8. A call option buyer profits when the price of the underlying asset goes above the strike price.

9. A put option gives the buyer the right to buy an asset at the strike price.

10. A call option becomes more valuable when the price of the underlying asset rises above the strike price.