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