When is it recommended to buy a call option or sell a put option?

When the market is expected to go down When the market is expected to remain flat When the market is expected to go up When volatility is high

What type of risk does an option buyer have?

Unlimited risk Limited risk to the extent of the premium paid No risk Moderate risk

What is the primary focus of most options traders?

Holding options until expiry Capturing variations in premiums Predicting long-term market trends Writing options

What are the four forces that influence option premiums called?

Market Factors Option Greeks Pricing Variables Volatility Indicators

What formula uses Option Greeks to determine the price of an option premium?

Black & Scholes Option Pricing Formula Premium Calculation Formula Option Valuation Model Greek Analysis Formula