Options Introduction Recap
Test your knowledge of basic options concepts. Select the best answer for each question.
A stock is trading at $100. Which option gives you the right to buy at $95?
AAPL is at $175. Which position has unlimited risk?
What happens if you don't exercise an in-the-money option by expiration?
TSLA is trading at $250. Which option has the highest probability of profit?
Which factor does NOT affect option premium?
META announces earnings in 2 days. What typically happens to option prices?
Which strategy has defined risk (cannot lose more than initial investment)?
You buy a $50 call for $2 when the stock is at $48. What's your breakeven price?