Book manager review

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Question 1 of 6

1. Question
What is the difference between a book and a portfolio?
- They mean the same thing.
- A portfolio is what you currently hold, whereas a book is the positions you want to update.
- A book is the collection of positions for a specific underlying, whereas a portfolio is a collection of all books.
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Question 2 of 6

2. Question
Which option is not a major feature of the book manager?
- It can simulate the future value of your book.
- It can automatically make trades to keep your book within a specified delta window.
- It allows you to experiment with position changes within your book.
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Question 3 of 6

3. Question
Which of the following parameters is not supported by the book manager’s market value projection?
- Exit implied volatility
- Exit historical volatility
- Exit interest rate
- Target date
- Expiration handling
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Question 4 of 6

4. Question
What is the difference between a current and a pending book?
- A current book represents the positions you currently hold, whereas a pending book reflects changes you've made in the book manager.
- A current book only represents your current portfolio, whereas a pending book only includes positions you don't yet have.
- A current book refers to your portfolio, whereas a pending book refers to your open orders.
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Question 5 of 6

5. Question
Why is modeling option liquidity important for book management?
- Modeling liquidity is important because it will help you avoid options that are likely to have low volume and open interest in the future.
- Modeling liquidity gives you a more accurate view of your future book value by accounting for expected liquidity costs based on the current liquidity surface.
- This is a trick question. Modeling liquidity isn't actually important because I use one of those brokerages that suggests I can always trade options at the midpoint.
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Question 6 of 6

6. Question
Which of the following features is not supported by the book manager’s adjustment search?
- Only show transactions that help reach a target book delta in the range -100 to 100.
- Only show transactions that result in a book maintenance margin of 0.
- Only show transactions that are buying fewer than 25 calls.
- Only show transactions that will be profitable by expiration.
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Managing option holdings with the book manager

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