The 3Dimensional Trading Breakthrough

The 3 Dimensional Trading Breakthrough
Section #2 Answers:
1. Futures contracts are also known as cash-forward contracts. (Reference The
Futures Contracts…Paragraph #3)
B) False
2. The difference(s) between the futures contract and the individual stock as
underlying assets in (are): (Reference The Stock…Paragraphs #2 & 3)
D) All of the above.
3. The factor(s) that determines whether an option is “at-the-money,” “in-themoney,”
or “out-of-the-money” is (are): (Reference The Options…Paragraph
#6)
C) The strike price of the option and current asset price.
4. The real value of an option is it’s: (Reference How Options are…Paragraph
#1)
B) Intrinsic value.
5. The anticipated forthcoming underlying asset activity is defined as: (Reference
Implied Volatility…Paragraphs #1 & 2)
A) Implied volatility.
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