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.
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