Welcome to your Equity derivatives for beginners
1. What is a stock index future?
2. Which of the following is true about in-the-money options?
3. What is a stock index?
5. Which of the following is a disadvantage of covered call writing?
6. What is the purpose of using equity derivatives for speculation?
7. Which of the following is an example of an equity index derivative?
8. Which of the following is an example of an exchange-traded equity derivative?
9. What is the primary difference between equity options and equity swaps?
10. What is an option premium?
11. What is a protective put strategy?
12. What is meant by the term "short position" in equity derivatives?
13. What is meant by the term "exercise price" in equity options?
14. What is the primary purpose of using equity derivatives?
15. What is an equity swap?
16. What is delta in options trading?
17. Which of the following is an example of an equity option strategy?
18. What is the maximum loss for the writer of a call option?
19. Which of the following statements is true about European-style options?
20. Which of the following is a characteristic of futures contracts?
21. What is a straddle strategy?
22. What is the primary advantage of using equity derivatives for leverage?
23. What is meant by the term "covered" in covered call writing?
24. What is the main difference between options and futures contracts?
25. Which of the following is true about at-the-money options?
26. What is the maximum loss for the writer of a put option?
27. What is a butterfly spread strategy?
28. What is meant by the term "long position" in equity derivatives?
29. Which of the following statements is true about American-style options?
30. Which of the following statements is true about option exercise?
31. What is a strangle strategy?
32. What is the primary risk associated with equity derivatives?
33. Which type of equity derivative provides the buyer with the right, but not the obligation, to buy an underlying asset at a predetermined price?
34. Which of the following is an example of an equity derivative?
35. What is a covered call strategy?
36. Which type of equity derivative provides the buyer with the right, but not the obligation, to sell an underlying asset at a predetermined price?
37. What is an equity derivative?
38. Which of the following is a disadvantage of using equity derivatives?
39. What is an option writer?
40. Which of the following is a benefit of using equity derivatives for hedging?
41. What is theta in options trading?
42. Which of the following factors affects the value of an option premium?
43. Which of the following is an example of a non-linear equity derivative?
44. Which of the following is true about out-of-the-money options?
45. What is the purpose of using equity futures?
46. What is rho in options trading?
47. What is gamma in options trading?
48. What is the maximum loss for a buyer of an equity put option?
49. Which of the following is a key feature of convertible bonds?
50. What is vega in options trading?