2 July Options Welcome to your Options Which of the following is an example of an option? Buying 100 shares of stock in IBM Buying a contract to sell 100 shares of stock in IBM at a fixed price Buying 100 shares of stock in IBM and agreeing to hold them for a year Selling 100 shares of stock in IBM at a fixed price None An option that can only be exercised on its expiration date is known as: A European option An American option A put option A call option None Which of the following is true about the strike price of an option? It is the current market price of the underlying asset. It is the price at which the option can be exercised. It is the price at which the option was originally purchased. It is irrelevant to the value of the option. None None Time's up