When is the only time a call option buyer can exercise their right to buy the underlying asset at the agreed-upon strike price? Option: "When the option premium is at its lowest", "Anytime before the expiry date", "On the day of expiry", "When the underlying price is at its peak"

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When is the only time a call option buyer can exercise their right to buy the underlying asset at the agreed-upon strike price?

"When the option premium is at its lowest"

"Anytime before the expiry date"

"On the day of expiry"

"When the underlying price is at its peak"

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What is the term for the price at which the buyer of a call option can purchase the underlying asset on the expiry date?

"Strike Price"

"Underlying Price"

"Option Premium"

"Option Expiry"

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What is the term for the act of claiming the right to buy the underlying asset at the strike price on the expiry date?

"Option Settlement"

"Underlying Price"

"Option Premium"

"Exercising the option contract"

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When does a call option buyer benefit?

The buyer always benefits

When the asset price stays below the strike price

When the asset price increases higher than the strike price

When the asset price stays at the strike price

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What is the term for the pre-specified price at which the option can be exercised?

Strike Price

Expiry Price

Reference Price

Premium

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What is the profit potential for a call option buyer?

Limited to the strike price

Dependent on the spot price at expiry

Unlimited

Limited to the premium paid