Interest and inflation
The phenomenon of money becoming less valueable
What is inflation?
A sector that closely follows stock market trends
What is a cyclical sector
This represents ownership in a company.
What is a share?
How many shares a typical option contract can exercise
What are 100 shares?
What do you call spreading money across different investments to reduce risk?
What is Diversification?
The appointer of the Federal Reserve chair
Who is the president?
What is the Defense/Medical sector
What type of security does an options contract derive from?
Stocks/ETFs
This type of option gives the holder the right to sell an asset at a specified price within a specific timeframe.
What is a Put Option?
What term describes an investor’s tolerance for potential losses?
What is Risk Tolerance?
What do central banks often lower during recessions to stimulate the economy?
What are interest rates?
What happens in the job market during recessions
What is unemployment
What is a loan to a government/company called?
Bonds
The day of the week options normally expire on
What is Friday? (End of the trading week)
What is the average annual return of the S&P 500 (long-term)?
What is ~10%?
How many members are on the Federal Open Market Committee?
12
What do you call it when national GDP decreases for 2 quarters in a row?
Recession
What security pools money from many investors to buy multiple assets?
what are mutual/index funds?
The largest factor affecting the value of an option
What is volatility?
What investment strategy involves regularly investing a fixed amount regardless of market conditions?
What is Dollar-cost averaging?
What is the target % for inflation rates?
2%
When market speculation drives up the price of stocks without meaningful increases in earnings or actual value
What is a bubble?
The portion of profit given to shareholders quarterly
What are dividends?
The formula used to value an option
What is Black Scholes Formula?
What metric measures a stock’s volatility relative to the overall market?
What is Beta?