Options Basics: Stocks, Payoffs & Puts & Calls


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What is a 'derivative,' when speaking of financial instruments?

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1. What is the difference between a 'call' and 'put' option?

2. If you see an option quoted at $2.25, how much will that option contract cost you (excluding transaction fees)?

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About This Quiz & Worksheet

Our focus here will be on topics such as derivatives, types of options, and what can determine the price of an option.

Quiz & Worksheet Goals

Essentially, we'll ask you about:

  • Derivatives in a financial context
  • Call and put options
  • The cost of option contracts
  • Money one can lose when buying an option
  • Factors that can determine option prices

Skills Practiced

  • Knowledge application - use your knowledge to answer questions about pricing as it relates to options
  • Distinguishing differences - compare and contrast topics from the lesson, such as call and put options
  • Making connections - use understanding of the concept of derivatives

Additional Learning

You may want to use the lesson, Options Basics: Stocks, Payoffs & Puts & Calls to further your awareness of this information. If you use these tools, you'll be better-rounded on subjects like:

  • The definitions of calls and puts
  • Option contracts
  • The way payoffs work