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      Basics of Options Quiz #6 on QuizRevolution


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      Newest Quiz: Basics of Options Final Exam

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      Basics of Options Quiz #6

      Click Below to test your knowledge of stock options

      Question
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      Basics of Options Quiz #6
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      A specific price is associated with the purchase of a stock option.
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       of players answered correctly.
      • True

      • False

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      Comments:
      1. A specific price is associated with the purchase of a stock option.
        1. True
        2. False
        1. True: Stock options give the holder the right to buy or sell that stock at a specific price.

      2. The Specific price associated with an option has a technical name. It is
        1. Option Price
        2. Strike Price
        3. Bid
        4. Ask
        1. Strike Price is the technical which refers to the price at which a person may buy or sell a specific stock.

      3. Stocks that trade between $25-$200/share issue option strike prices in
        1. $2.50 increments
        2. $5 increments
        3. $10 increments
        4. None of these
        1. Stocks trading between $25 and $200 issue option strike prices in $5 increments

      4. Stocks trading below $25/share issue strike prices
        1. In $2.50 increments
        2. In $5 increments
        3. In $10 Increments
        4. None of these
      5. The QQQQ issues strike prices in $1 increments
        1. True
        2. False
        1. True: The options associated with QQQQ are issued in $1 increments.

      6. Stocks trading above $200/share issue strike prices
        1. $2.50 increments
        2. $5 increments
        3. $10 increments
        4. None of these
        1. Stocks trading above $200/share issue options in $10 increments.

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