Quiz on ” Forex Options – Exotic Options “

1. What is the difference between a one-touch option and a no-touch option?

A) A one-touch option generates a payout when the trigger level is reached, and a no-touch option generates a payout when the trigger level is not reached.

B) A one-touch option generates a payout when the trigger level is not reached, and a no-touch option generates a payout when the trigger level is reached.

C) There is no difference between a one-touch option and a no-touch option.

2. If the price of a binary touch option is expressed as 17%/20%, what does this mean?

A) The premium received for selling the option is 17% of the potential payout, and the premium paid for buying the option is 20% of the potential payout.

B) The premium received for selling the option is 20% of the potential payout, and the premium paid for buying the option is 17% of the potential payout.

C) The premium received for selling the option is 17% of the potential payout, and the premium paid for buying the option is 83% of the potential payout.

3. What is the potential profit and loss known for binary touch options?

A) They have an unknown potential profit and loss.

B) They have a known potential profit but an unknown potential loss.

C) They have both a known potential profit and a known potential loss.

Quiz on ” Forex Options – Exotic Options “

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