Princeton Energy Programme's Options III - Option Strategies (OS) is an advanced workshop that requires that delegates enter with an understanding of certain basic concepts. Entering this workshop without a grasp of the prerequisites may keep you from getting the most out of the class. In addition, since a good portion of the course is devoted to team exercises, it is important that all team members enter on a similar level.

The test below is not "graded". It is meant to give you an idea of how comfortable you are with the prerequisite material. If this test comfortably takes you one hour or less and you get 85% of the questions correct, you are prepared to enter the course. If, however, this test takes you more than one hour to complete, or you answer less than 85% of the questions correctly, we strongly urge you to consider taking the prerequisite courses for this workshop. The prerequisites for Options III - Option Strategies (OS) are Fundamentals of Energy Futures (FOEF), Options I - Fundamentals of Energy Options (FOEO), and Options II - Option Pricing and Applications (OPA).

We will review all of these tests to ensure all delegates are entering at a similar level.

View course details

Required Tooltip

Your Details

Required Tooltip
Required Tooltip
Required
Required Tooltip
Required Tooltip
Required Tooltip
Tooltip
Required
Required Tooltip

A. Have you already taken Fundamentals of Energy Futures?

Yes
Required

B. Have you already taken Options I - Fundamentals of Energy Options?

Yes
No
Required

C. Have you already taken Options II - Option Pricing and Applications?

Yes
No
Required

1. Which of the following is not a variable in the Black/Scholes option pricing model?

a. Time until expiration
b. Historical volatility
c. Risk-free interest rate
Required

2. Delta is steepest __________________.

a. In the money
b. At the money
Required
Required
Required
Required
a. Long puts, long calls
Required
c. $21.00 call with 90 days to expiration
Required
Required
a. $0.33
b. $0.63
c. $0.96
Required
10. Which of these strategies can be used to reduce the cost of time decay? (check all that apply)
a. Rolling long option positions to a later month two weeks before expiration
b. Rolling short option positions to a later month two weeks before expiration
c. Rolling long option positions to a month with two weeks before expiration
d. Selling calls rather than buying puts
Required

11. Which of the following spread options is not available on the NYMEX?

a. crack spread
b. spark spread
c. calendar spread
Required

12. Which of the following is a variable in spread option pricing models?

a. The average spread level
b. The seasonality of spread levels
c. The expiration dates for options on the spread components
d. The correlation between the spread components
Required

13. Due to put/call parity, which of these will be equal between puts and calls with the same strike price and expiration date?

a. intrinsic value
b. time value
c. total value
Required

14. Which of the following is an estimate of how much an option delta will change for each unit change in the underlying price?

a. delta
b. gamma
c. epsilon
d. theta
Required

15. A synthetic long futures position is made by combining which of the following?

a. Long call + short put with the same strike price and expiration date
b. Short call + long put with the same strike price and expiration date
c. Long call + short futures with different strike prices but the same expiration date
Required

16. The implied volatility of a $20.00 call and a $21.00 call, with the same expiration date, will always be equal.

a. TRUE
b. FALSE
Required

17. The implied volatility of a $20.00 call and a $20.00 put, with the same expiration date, will always be equal.

a. TRUE
b. FALSE
Required
a. Implied volatility stays steady
b. Implied volatility decreases
c. Implied volatility increases
Required

18. Which generally happens as an option approaches expiration?

19. Futures = $23.42
Implied volatility = 26%
$24 put = $0.73

What is the time value of the $24 call?

a. $0.73
b. $0.15
c. $1.31
Required

20. Which type of volatility is calculated from past prices?

a. Implied
b. Intrinsic
c. Open
d. Historical
Required

View course details

  • quote1
  • quote3

UK: (+44) 1865 250521   |   USA: (+1) 713 343 1699   |   Singapore: (+65) 6809 1170

 

Email us at info@mennta.com

logos GARP EPP ERP bac2 logos logosfacebooklinkedintwitter
 
Mennta Energy Solutions (formerly The Oxford Princeton Programme, Inc.) is not affiliated with Princeton University, Oxford University, or Oxford University Press.