Answer Happy

True-False Questions 20.1 An in-the-money put option occurs when the current price of the underlying asset is less than the striking price. 20.2 An out-of-the-money call option is a call where the price of the optioned asset is less than the striking price. A put value tends to fall as the time to maturity of the put increases. 20.3 20.4 A covered option is a written option where the writer owns the underlying asset. 20.5 Selling short and writing a put option are essentially the same thing. 20.6 Call options are purchased by individuals who are bullish on the underlying asset. 20.7 The value of an option tends to increase as the volatility (or risks) of the underlying asset increases. 20.8 If you purchase a put option, you are expecting the value of the underlying asset to increase.