Calls and Puts Quiz
Calls and puts are the two building blocks of every options trade. These six questions check that you have the direction and the risk straight.
Pick an answer for each question — your score appears at the end.
Question 1A call option becomes more profitable when the stock…
A long call gains value as the underlying rises above the strike.
Question 2A put option gives the holder the right to…
A put is the right to sell the underlying at the strike price.
Question 3The maximum loss for someone who BUYS a call is…
A long option buyer can never lose more than the premium they paid.
Question 4A long put is a bet that the stock will…
A put gains value as the stock falls below the strike.
Question 5Which position has theoretically unlimited loss if left uncovered?
A naked call has no cap on losses because the stock can rise without limit.
Question 6A call is "in the money" when the stock price is…
A call has intrinsic value when the stock trades above its strike.
Call vs Put OptionsWhat Is an Option? Options Trading ExplainedMoneyness: ITM, ATM & OTM
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