Stock Market Basics

Derivatives and Leveraged Products

12 of 60 questions in the app

Derivatives basics

  1. What is a derivative? Easy
  2. What is meant by the underlying of a derivative? Easy

Options

  1. What does a call option give its holder? Easy
  2. What does a put option give its holder? Easy
  3. What does the buyer of an option pay to the seller? Easy
  4. Who is the writer in an options transaction? Easy
  5. What is the strike price of an option? Easy

Forward transactions

  1. What characterises a future? Easy

Options

  1. Which statements about the price of an option are correct? Medium
  2. How does rising expected volatility of the underlying affect option prices if everything else stays the same? Medium

Options

  1. An investor buys a call with a strike price of 100 euros for a premium of 5 euros (ratio 1). On the expiry date, the share stands at 112 euros. Which statements are correct? Hard
  2. An investor buys a put with a strike price of 50 euros for 3 euros. At expiry, the share trades at 40 euros. What is her result per option, and where was the break-even point? Hard

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