This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - A call option gives the buyer the right to buy a stock, while a put option gives the right to sell. - An option's premium is composed of its intrinsic value (the in-the-money amount) and its time value. - A call is 'in-the-money' when the market price is above the strike price; a put is 'in-the-money' when the market price is below the strike price. - Exercise is the act of the buyer using their right, while assignment is the seller being obligated to fulfill the contract. - Options trading requires special account approval and risk disclosure due to the complexity and potential for significant losses. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep