Exercise
Fill in the blanks with the words below.
- A. Assigned
- B. Traded
- C. Open interest
- D. Liquidity
- E. Exercised
- F. Liquidated
- G. Expired
- H. Volume
- 1. When an options holder decides to buy or sell the underlying contract, the option is said to be _____.
- 2. The total number of contracts currently held by traders on a given trading day is known as _____.
- 3. A futures call option has _____ when it is out of the money and the buyer lets the option go to term without ever purchasing the underlying contract at its strike price.
- 4. When a call options writer is selected to the deliver the underlying contract to the options buyer, he is _____ the option.
- 5. When investors talk about how actively an option is being traded, they are discussing its _____.
- 6. When an investor closes
