20-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter20TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.ThepricethatthebuyerofacalloptionpaystoacquiretheoptioniscalledtheA.strikeprice.B.exerciseprice.C.executionprice.D.acquisitionprice.E.premium.2.ThepricethatthewriterofacalloptionreceivestoselltheoptioniscalledtheA.strikeprice.B.exerciseprice.C.executionprice.D.acquisitionprice.E.premium.3.ThepricethatthebuyerofaputoptionpaystoacquiretheoptioniscalledtheA.strikeprice.B.exerciseprice.C.executionprice.D.acquisitionprice.E.premium.4.ThepricethatthewriterofaputoptionreceivestoselltheoptioniscalledtheA.premium.B.exerciseprice.C.executionprice.D.acquisitionprice.E.strikeprice.5.ThepricethatthebuyerofacalloptionpaysfortheunderlyingassetifsheexecutesheroptioniscalledtheA.strikeprice.B.exerciseprice.C.executionprice.D.strikepriceorexecutionprice.E.strikepriceorexerciseprice.6.ThepricethatthewriterofacalloptionreceivesfortheunderlyingassetifthebuyerexecutesheroptioniscalledtheA.strikeprice.B.exerciseprice.C.executionprice.D.strikepriceorexerciseprice.E.strikepriceorexecutionprice.7.ThepricethatthebuyerofaputoptionreceivesfortheunderlyingassetifsheexecutesheroptioniscalledtheA.strikeprice.B.exerciseprice.C.executionprice.D.strikepriceorexecutionprice.E.strikepriceorexerciseprice.20-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.8.ThepricethatthewriterofaputoptionreceivesfortheunderlyingassetiftheoptionisexercisediscalledtheA.strikeprice.B.exerciseprice.C.executionprice.D.strikepriceorexerciseprice.E.Noneoftheoptionsarecorrect.9.AnAmericancalloptionallowsthebuyertoA.selltheunderlyingassetattheexercisepriceonorbeforetheexpirationdate.B.buytheunderlyingassetattheexercisepriceonorbeforetheexpirationdate.C.selltheoptionintheopen...
