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Study Guide for Come Into My Trading Room - Forex Factory

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ADVANCED CONCEPTS 61<br />

Question 64—Options<br />

Option prices depend on all of the following, except:<br />

1. Their distance to the exercise price<br />

2. Their time to the expiration<br />

3. Market trend<br />

4. Interest rates<br />

5. Stock volatility<br />

Question 65—Options<br />

With a stock trading at 65 in March, an options trader has several<br />

choices. Match each choice with the position it describes:<br />

1. Buy stock and sell 70 May call<br />

2. Buy 60 May put<br />

3. Sell 60 May put<br />

4. Buy 60 May call and sell 60 July–May call<br />

5. Buy 70 May call<br />

A. Naked write<br />

B. Covered write<br />

C. Spread trade<br />

D. Long call<br />

E. Long put

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