Options flashcards

30 cards on options for the SIE exam. Short answers, one fact per card, and a line under each explaining why. Here is what the prompts look like:

• A contract whose value comes from the price of another asset is a ＿＿＿Answer inside
• Which option gives its holder the right to sell stock?Answer inside
• Which one gives its holder the right to buy: a call or a put?Answer inside
• Which side of an option contract carries an obligation: the buyer or the writer?Answer inside
• The price a buyer pays for an option contract is the ＿＿＿Answer inside