1. Listed below are four basic option positions. Two of these are generally bearish and two are bullish. Put them in the correct column.
buy a call write a call buy a put write a put
BEARISH BULLISH
_______________ _______________
_______________ _______________
2.Explain the difference between an American option and a European option.
3.How do index options simplify the process of option overwriting with large portfolios?
4.Give an example of a circumstance in which you feel writing an individual equity call option would be preferable to writing an index option.