SIE Options Questions and Answers
Already Passed
What does a call option provide to its owner?
It allows the holder to sell a set amount of securities at a predetermined price for a specified
duration.
It grants the holder the ability to purchase a specified quantity of securities at a fix...
1 SIE Options Questions and Answers Already Passed What does a call option provide to its owner? It allows the holder to sell a set amount of securities at a predetermined price for a specified duration. It grants the holder the ability to purchase a specified quantity of securities at a fixed price for a set time period. It obligates t he holder to buy securities at a fluctuating price within a fixed timeframe. It gives the holder the right to sell securities at a fixed price for a predetermined duration. ✔✔It grants the holder the ability to purchase a specified quantity of se curities at a fixed price for a set time period. When someone buys a call option, what does this imply about their market outlook? They are pessimistic about market movements. They believe the market will stay the same. They are optimistic about the market's rise. They expect the market to decline. ✔✔They are optimistic about the market's rise. 2 What is the typical settlement period for a call option after it is exercised? 1 business day after exercise 3 business days aft er exercise 2 business days after exercise 5 business days after exercise ✔✔2 business days after exercise If someone purchases a put option, what is their market sentiment? They expect the market to rise. They are indifferent to market movements. They anticipate a decline in the market. They foresee the market remaining stable. ✔✔They anticipate a decline in the market. When selling a put option, what does this indicate about your market perspective? You expect a market drop and want to profit from it. You think the market will rise and benefit from higher prices.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BrilliantScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.12. You're not tied to anything after your purchase.
