Series 3: Exercise

Exercise

Fill in the blanks with the words below.

A. Assigned

B. Traded

C. Open interest

D. Liquidity

E. Exercised

F. Liquidated

G. Expired

1. When an options holder decides to buy or sell the underlying contract, the option is said to be _____.

2. 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.

3. When a call options writer is selected to deliver the underlying contract to the options buyer, he is _____ the option.

4. When investors talk about how actively an option