19. What is a call option? A. Right to sell stock at a pre-determined price B....

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19. What is a call option? A. Right to sell stock at apre-determined price B. Right to buy stock at a post-determinedprice C. Right to sell stock at a post-determined price D. Right tobuy stock at a pre-determined price 20. When is a call optionexercised for maximum gain? A. Buyers exercise when the option isin the money B. Buyers exercise when the option is out of the moneyC. Sellers exercise when the option is in the money D. Sellersexercise when the option is out of the money 21. What is a putoption? A. Right to sell stock at a pre-determined price B. Rightto buy stock at a post-determined price C. Right to sell stock at apost-determined price D. Right to buy stock at a pre-determinedprice 22. When is a put option exercised for maximum gain by thebuyer? A. When the stock price stays the same B. When the stockprice falls much below the exercise price C. When the stock priceincreases D. When the stock price is volatile

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19 Option A is false because call option helps to buy a stock at predetermined price Option B is False because strike price is predetermined Option C is False as stocks are bought at predetermined price Option See Answer

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19. What is a call option? A. Right to sell stock at apre-determined price B. Right to buy stock at a post-determinedprice C. Right to sell stock at a post-determined price D. Right tobuy stock at a pre-determined price 20. When is a call optionexercised for maximum gain? A. Buyers exercise when the option isin the money B. Buyers exercise when the option is out of the moneyC. Sellers exercise when the option is in the money D. Sellersexercise when the option is out of the money 21. What is a putoption? A. Right to sell stock at a pre-determined price B. Rightto buy stock at a post-determined price C. Right to sell stock at apost-determined price D. Right to buy stock at a pre-determinedprice 22. When is a put option exercised for maximum gain by thebuyer? A. When the stock price stays the same B. When the stockprice falls much below the exercise price C. When the stock priceincreases D. When the stock price is volatile