Options Trading IQ Challenge by Research Analyst | Feb 4, 2024 | 0 comments Welcome to your Options Trading IQ Challenge 1. What is the primary difference between a call option and a put option? A ) Call options give the holder the right to buy, while put options give the holder the right to sell. B ) Call options give the holder the right to sell, while put options give the holder the right to buy. C ) Call options are riskier than put options. D) Put options are riskier than call options. None 2. What does the term "strike price" refer to in options trading? A ) The price at which trader's purchase Option's. B ) The price at which Underlying asset is bought or sold if the option is exercised C ) The expiry price of option's. D ) The price at which the underlying asset is trading. None 3. Which options trading strategy involves simultaneously buying a call option and a put option with the same expiration date and strike price? A) Covered call B) Long straddle C) Protective put D) Iron condor None 4. What is theta in options trading? A ) The sensitivity of an option's price to changes in the price of the underlying asset. B ) The measure of an option's time decay. C ) The potential profit from exercising an option. D ) The maximum loss from holding an option until expiration. None 5. Which options trading strategy involves selling a call option and buying a put option with the same expiration date and strike price? A ) Iron condor B ) Bull put spread C ) Bear call spread D ) Covered call None 1 out of 5 Name Email Phone Time's up