Series 3: Exercise

Exercise

Fill in the blanks with the words below.

1. A. Assigned
2. B. Traded
3. C. Open interest
4. D. Liquidity
5. E. Exercised
6. F. Liquidated
7. G. Expired
8. H. Volume
9. 1. When an options holder decides to buy or sell the underlying contract, the option is said to be _____.
10. 2. The total number of contracts currently held by traders on a given trading day is known as _____.
11. 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.
12. 4. When a call options writer is selected to the deliver the underlying contract to the options buyer, he is _____ the option.
13. 5. When investors talk about how actively an option is being traded, they are discussing its _____.
14. 6. When an investor closes