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Try a couple of yoga poses before showing up for your exam. Downward facing buffalo, anyone? Mind the tuft.

Options: Good, Bad, Ugly

Options: Good, Bad, Ugly

"Good answer, but I lied. I do have more questions for you. What's an option? Now let's talk about derivative securities. My stomach will wait; I'll do mind control."

"Uh, okay. Basically, an option is a contract giving the holder the right to buy (call) or sell (put) the underlying security at an agreed-upon price (the strike price). The holder has this right up until the expiration of the contract, or the exercise date.

"The person selling the contract is called the option writer, and the...

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