Question

What type of options are standardised with respect to the underlying asset, the size of the contract and the maturity date?

Select one:

a. Call Options

b. Over-The-Counter Options

c. Put Options

d. Exchange Traded Options

Which of the following features of an option is the only thing that can change over the life of the option?

Select one:

a. The exercise price.

b. The time to maturity.

c. The underlying asset of the option.

d. Who the writer of the option is.

Answer 1

What type of options are standardised with respect to the underlying asset, the size of the contract and the maturity date?

Option d. is correct

Exchange Traded Options are standardized with respect to the underlying asset, the size of the contract and the maturity date. These remain same and do not change during the contract cycle.

Options a and c are incorrect because Call and Put options just specify whether the buyer gets the right to buy or sell the underlying, respectively.

Option b is incorrect because Over-The-Counter Options are custamizable.

Which of the following features of an option is the only thing that can change over the life of the option?

Option b. is correct

Only the time to maturity changes over the life of the option.

The exercese price, the underlying asset of the option, and the one who wrote the option doesn't change.