Unit 8, 9

Question 1

OEX

Answer 1

S&P 100 index

Question 2

SPX

Answer 2

S&P 500 index

Question 3

MMI

Answer 3

Major market index
mimics the Dow Jones 30 industrial average

Question 4

VIX

Answer 4

Volatility market index
Fear gauge or fear index
Volatility of the S&P 500 index options traded on the CBOE

Question 5

Broad-based indexes

Answer 5

Reflect movement of the entire market

Question 6

Narrow-based indexes

Answer 6

Track the movement of market segments in a specific industry such as technology or pharmaceuticals

Question 7

FCO

Answer 7

Foreign currency options
XDN, Japanese, 1 million contract size
Otherwise, XD_, 10,000 unit contact

Question 8

LEAPS

Answer 8

Long-term Equity Anticipation Securities (LEAPS) are a type of stock or index option with notably longer expiration dates as compared to standard options. While most traditional options expire within a year, LEAPS options can have expirations that extend up to two or three years from the time they’re issued.

Question 9

ROP

Answer 9

Registered options principal

Question 10

Open interest

Answer 10

The number of contracts outstanding
The higher the open interest, the more liquid the option
Declines when moving toward expiration

Question 11

Put-Call Ratio

Answer 11

Number of traded put options
/ divided by
Number of traded call options
Higher ratio, more bearish
Can also be a contrarian indicator
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