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      FinancialPuz Quiz Channel

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      Quizzes Created: 8

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      Newest Quiz: Basics of Options Final Exam

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      Basics of Options Quiz #5

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      Question
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      Basics of Options Quiz #5
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      When you buy a call option you purchase the right to buy any stock in the world
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      • True

      • False

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      Comments:
      1. When you buy a call option you purchase the right to buy any stock in the world
        1. True
        2. False

        1. False:  When you buy an option only the specific stock associated with that option may be bought or sold.

      2. All companies in the United States issue options on their stock
        1. True
        2. False

        1. Only companies which meet the proper requirements are allowed to issue options on their stock.

      3. Which of the following WOULD NOT qualify to trade options
        1. A company listed as a New York Stock Exchange (NYSE) stock
        2. A company listed on the American Stock Exchange (AMEX)
        3. A company listed as OTC BB
        4. A company listed on the NASDAQ

        1. Companies that trade OTC BB (Over The Counter Bulletin Board) are NOT qualified to issue options.  

      4. A company must have at least 2,000 individual share holders to issue options
        1. True
        2. False

        1. True:  One of the 4 qualifications a company must meet in order to issue options is to have at least 2,000 individual shareholders. 

      5. If person buys a Call option for Apple, he/she has the right to buy any technology stock
        1. True
        2. False

        1. Any option is only good for the specific stock it is issued on.  

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