Which of the following is NOT correct about the key elements of options contracts?Group of answer choicesThe premium is the option price that locks the options buyer into the contract.The strike price is the prevailing market price for the underlying security at the option expiration date.The option premium can be different for both European and American-type options.Options contracts include strike price, maturity date and the price of the underlying security.

In options markets, the strike price is the price:Group of answer choicesat which a buyer can buy or sell the option in the market.specified in an options contract at which the buyer can buy or sell the underlying asset.an option buyer pays for it.an option writer receives.

In options markets, the price paid by an option buyer to the writer of the option is the:Question 1Select one:a.call price.b.premium.c.put price.d.strike price.

Which of the following statement describes an option contract and the major distinction between a call and a put option?Group of answer choicesAn option is defined as the right, but not the obligation, to buy or to sell a specified amount of a given stock, commodity, currency, index or debt, at a specified price (the strike price) for a specified period of time.A put option contract gives a buyer the right not the obligation to sell an underlying security at certain price specified in the put option contract.All of the given answers.A call option contract gives a buyer the right not the obligation to purchase an underlying security at certain price specified in the call option contract.

A European equity option contract has a strike price of $170, an expiration date of 30-Feb-2020, and a delta of -0.596. Which of the following is NOT true about this option contract?Review LaterIf the stock price goes up by a dollar, the option price will fall by 59.6 cents.The holder can only exercise the option on 30-Feb-2020.If the stock price goes up to $175, the holder is better off not exercising the option at expiration.The holder of the option has the right to buy the stock for $170 per share.

For the buyer of an option, the premium paid for the contract represents the:Question 2Select one:a.transaction cost.b.maximum return.c.largest potential loss.d.yield.Clear my choice