FIN 355 Quiz 6 ANSWER
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quiz.
Question 1
2 out of 2 points
Correct
The premium on an existing call option should _______ when there is an increase in the volatility of the stock.
Answer
Selected Answer:
increase
Correct Answer:
increase
Question 2
2 out of 2 points
Correct
A put option is in-the-money when _______.
Answer
Selected Answer:
the stock price is below the strike
Correct Answer:
the stock price is below the strike
Question 3
2 out of 2 points
Correct
Which of the following positions is replicated by shorting a security and writing a put?
Answer
Selected Answer:
Writing a call
Correct Answer:
Writing a call