Under what circumstances does the buyer of an exchange-listed put option pay a brokerage commission? More than one answer may be correct. For full credit, you must select all of the correct answers and none of the incorrect answers.

Under what circumstances does the buyer of an exchange-listed call option pay a brokerage commission? More than one answer may be correct. For full credit, you must select all of the correct answers and none of the incorrect answers.

When a stock goes ex-dividend, the share price drops by the amount of the upcoming dividend, all else equal. How does this event affect premiums on exchange-listed put options on the stock?

An options series consists of…

Which of the following is NOT a method used by the Options Clearing Corporation (OCC) to reduce risk of default in the options markets?

At an options exchange, a position limit… More than one answer may be correct. For full credit, you must select all of the correct answers and none of the incorrect answers.

What does it mean for an option contract to be listed on an options exchange?

Consider an exchange traded call option with an underlying asset of 100 shares of Boeing common stock and a strike price of $80 per share. Boeing announces a two-for-one stock split prior to the option expiration. After the stock split, how many shares of Boeing may be purchased from the writer if this call option is exercised?

A floor broker at an options exchange is responsible for…

Consider an exchange traded call option with an underlying asset of 100 shares of Boeing common stock and a strike price of $80 per share. Boeing announces a two-for-one stock split prior to the option expiration. After the stock split, what is the new strike price on this contract?