Questionnaire 1 of 10 · 10 questions
Contract foundations
Quotes, moneyness, obligations, breakevens and assignment.
Choose one answer per question. Explanations appear as you answer; your score appears after all ten.
- 01
A contract is quoted at $3.40. You sell two. How much cash arrives, ignoring fees?
- 02
You sold a put and the buyer exercises. What are your options?
- 03
A stock trades at $47. Which contract is in the money?
- 04
You buy a $50 call for $2.00. Where is breakeven at expiration?
- 05
A stock trades at $50. A $55 put is quoted at $6.20. How much of that is extrinsic?
- 06
You sold a $50 put for $1.50. The stock closes at $49.98 on expiration day.
- 07
Where is extrinsic value at its maximum?
- 08
Which position carries genuinely unlimited theoretical risk?
- 09
After being assigned on a $100 put for which you collected $2.50, what is your effective cost per share?
- 10
A strategy wins 90% of the time. What does that tell you about profitability?