Get 3 Daily Trade Ideas   CLICK HERE

questions

<        MAIN MENU        >

Step #1: Questions

Use the following picture for questions 1-3.

S1 Q1

1.  In the game of Plinko, a quarter is most likely to go in this bucket:

a. 1
b. 4
c. 8
d. 12

2.  In the game of Plinko, the highest prize is offered to the person whose coin lands in:

a. 1
b. 4
c. 8
d. 12

3.  If we played this game and collected the coins in a bin; then, after many times of playing, the coins would form the shape of:

a. a Triangle
b. a Normal Distribution Curve
c. a Rectangle
d. No shape. Most of the coins would end up near the end buckets.

4.  The probability of a stock going higher over the next week starting from today’s stock price is approximately:

a. 25%
b. 50%
c. 75%
d. 100%

5.  True or False: Calls give you the obligation to buy a stock at a certain Strike Price until the Expiration Date.

6.  Fill in the following table with the Options Value. Assume it is Expiration. 

S1 Q6

7.  Fill in the following table at Expiration with ATM, OTM, or ITM.

S1 Q7

8.  True or False. You can only sell a Call Option at Expiration.

9. The market price of an option where you can buy or sell that option is called:

a. The Options Discount
b. The Options Premium
c. The Options Probability Rated.
d. The Options Strike Price 10.   


10. Today is January 1st. Put these in order from least value to highest value:

s1 q10

a. $105, $125, $115
b. $105, $115, $125
c. $125, $115, $105
d. $125, $105, $115



11.  Fill in the following table with the Options Value. Assume it is Expiration. 

S1 q11

12.  Fill in the following table at Expiration with ATM, OTM, or ITM.

s1 q12

13.  True or False. Given the same expiration, a higher strike Put Option is always more valuable than a lower strike Put Option.

 14.   Today is January 1st. Put these in order from least value to highest value:

s1 q14

a. $105, $115, $100
b. $100, $115, $105
c. $100, $105, $115
d. $115, $105, $100

15.  True or False. Given the same expiration, a higher strike Call Option is less valuable than a lower strike Call Option because there is less of a chance for the stock to rise above the higher strike than the lower strike.

16.  True or False. Longer dated options are always more expensive than shorter dated options.

17.   Today is January 1st. Put these in order from least value to highest value:

Step 1 Q - q17

a.  Jun, Feb, Dec
b.  Feb, Jun, Dec
c.  Feb, Dec, Jun
d.  Dec, Jun, Feb

18.  Using the assumptions given, put these in order from least value to highest value. Note, it’s more important to understand the reason behind your answer, than the answer itself. If you get stuck, force yourself to make an educated guess. 

Assumption: 
Today is January 1st
Stock = $100
The stock issues no dividends and interest rates are 0%

Step 1 Q - q18

Learn More About Coaching

GREAT

TRADING IDEAS
REQUIRE

DATA

AFFILIATE 

WINNING

PICKS

winning picks full book cover

READ MORE

100% FREE. JOIN US.

Click to Join the Options Trading Newsletter

CHECK IT OUT

"FANTASTIC"

Learn More about the Best Options Trading Course

WATCH THIS VIDEO!
CLICK IMAGE BELOW

OptionsGeek 3 Steps to Profit Video Explainer

LEARN MORE