Chapter 20 Options Markets: Introdu ction 4 9 7 Mu ltiple Choice Qu estions 1. The price that the buyer of a call option pays to acquire the option is called the A) strike price B) exercise price C) execution price D) acquisition price E) premium Answer: E Difficulty: Easy 2. The price that the writer of a call option receives to sell the option is called the A) strike price B) exercise price C) execution price D) acquisition price E) premium Answer: E Difficulty: Easy 3. The price that the buyer of a put option pays to acquire the option is called the A) strike price B) exercise price C) execution price D) acquisition price E) premium Answer: E Difficulty: Easy 4. The price that the writer of a put option receives to sell the option is called the A) premium B) exercise price C) execution price D) acquisition price E) strike price Answer: A Difficulty: Easy Chapter 20 Options Markets: Introdu ction 4 9 8 5. The price that the buyer of a call option pays for the underlying asset if she executes her option is called the A) strike price B) exercise price C) execution price D) A or C E) A or B Answer: E Difficulty: Easy 6. The price that the writer of a call option receives for the underlying asset if the buyer executes her option is called the A) strike price B) exercise price C) execution price D) A or B E) A or C Answer: D Difficulty: Easy 7. The price that the buyer of a put option receives for the underlying asset if she executes her option is called the A) strike price B) exercise price C) execution price D) A or C E) A or B Answer: E Difficulty: Easy 8. The price that the writer of a put option receives for the underlying asset if the option is ex...
