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#CMAPopQuiz - 29 

10-29-2014 08:58 AM
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09-28-2025 11:08 PM

It is B.  A put option involves a transfer of cash BACK TO the party that is "putting" in exchange for its giving up the instrument.  In contrast, a "call" (such as a stock option) involves a transfer of cash FROM the party that is "calling" in order to receive an instrument (such as stock).

PUT = "I don't like this instrument anymore, please take it back and give me back my cash."

CALL = "I would really like to own that instrument.  I am exercising my right to buy it, here is my cash."

I find calls easier to remember than puts, so I just think "what is the opposite of a call?"

02-19-2025 05:07 AM

I think , B is correct.

07-26-2022 12:21 PM

i think A is the correct, since the owner of the put option will receive the investment, and the writer will abandon the investment

11-21-2021 08:55 AM

Yes , it seems B is correct

03-18-2021 07:37 AM

the company has the option. so it has the right to sell it. it means it owns the option ( it is the owner right now) to put it once it decides. B is correct

02-15-2019 11:21 PM

Correct Ans is B

04-27-2015 06:29 AM

I guess D is correct answer

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