How long is the Options Theory and Greeks practice sitting?

Outcry’s mock has 30 items across 2 sections, with 60 minutes of section time. Those figures describe this mock; see the source check for any published format elements.

Will Options Theory and Greeks use the same questions every time?

Outcry generates questions from its own banks. Counts and rules remain fixed; the selected problem types or numeric parameters change. Some archetypes may recur across attempts.

Options theory · Technical skills · options practice

Options Theory and Greeks - Timed Practice

Options-skills practice: payoffs, parity, structures and binomial pricing, followed by Greeks and risk. Outcry sets this 30-question, 60-minute paper; it is not an employer’s assessment.

Format

2 sections · 30 items · about 60 minutes
Format and scoring below apply to this Outcry mock. See the source check for verified firm details and practice adaptations.
Marking on Mechanics, Greeks: +1 correct, 0 wrong, 0 for a skip. Any item-specific mark weight is shown on the question.
No going back in this mock. Answer or skip, and the next item loads.
Questions are generated from Outcry's own banks; a retake changes the selection or parameters.

Sections

Mechanics - 16 items, 30 minutes, no negative marking. 16 items, 30 minutes. Payoffs and profit at expiry, breakevens, put-call parity in every direction, synthetics, moneyness, early exercise, dividends, the standard structures and their bounds, and binomial pricing.
Greeks - 14 items, 30 minutes, no negative marking. 14 items, 30 minutes. Delta, gamma, theta, vega and rho - signs, where each peaks across strike and time, the gamma and theta trade-off, the 0.4 rule, what implied vol is and is not, skew, and pin risk.

What this practice sitting covers

Options-skills practice: payoffs, parity, structures and binomial pricing, followed by Greeks and risk. Outcry sets this 30-question, 60-minute paper; it is not an employer’s assessment.

2 sections, 30 items and 60 minutes of section time. Each section uses its own clock. Questions are generated from Outcry’s own banks; repeat attempts can share problem types with different selections or parameters.

How this mock is marked

Marking on Mechanics, Greeks: +1 correct, 0 wrong, 0 for a skip. Any item-specific mark weight is shown on the question.

This mock has no back navigation: each submitted or skipped question is final.

Scores measure performance on these exercises. They are not a firm’s pass threshold or a prediction of an interview or offer.

Public sources and practice adaptations

The Options Industry Council explains options sensitivities including delta, gamma, theta, vega and rho. This supports topic relevance, not a firm assessment format.

Outcry sets the 30-question, 60-minute paper. It is an options-skills exercise and not any particular employer’s interview round.

Section by section, with a worked example

Every example below is generated by Outcry, drawn from the same generator that section runs during the timed sitting. None of it is any firm's own material.

A. Mechanics

16 items, 30 minutes. Payoffs and profit at expiry, breakevens, put-call parity in every direction, synthetics, moneyness, early exercise, dividends, the standard structures and their bounds, and binomial pricing.

In this Outcry section: 16 items in 30 minutes, averaging 113 seconds per item. Wrong answers receive no marks and carry no deduction. Unanswered items score zero. Correct-answer weights are shown on the questions. These are the mock’s rules.

Example 1

You are long the stock at $90, long the $80 put and short the $80 call, both expiring in 12 months. What is this and what is it worth at expiry?

A conversion - it is worth exactly $80 at expiry whatever the stock does.
A straddle - it pays off on a big move in either direction.
A collar - the upside is capped but it still moves with the stock.
A reversal - the stock leg is the wrong way round for a conversion.

Answer A conversion - it is worth exactly $80 at expiry whatever the stock does.

Value at expiry is S + max(80 - S, 0) - max(S - 80, 0) = 80 at every level. Above the strike the short call takes the stock away at 80; below it the put sells it at 80. The whole package is a zero coupon bond worth $77.64 today, so a conversion is a funding trade - market makers put them on to lend, not to take a view.

Example 2

The stock is $50 and moves in two steps of 12 months each. Every step it multiplies by 1.15 or by 0.85. The rate is 2%. What is the $53 call worth today?

Answer 4.06

Per step, q = (e^(rT) - d)/(u - d) = 56.73%. The three terminal nodes are $66.12, $48.87 and $36.13, paying $13.12, $0.00 and $0.00. Weighted by q^2, 2q(1-q) and (1-q)^2 that is $4.22 at expiry, discounted over two steps: $4.22 / 1.0408 = $4.06. The middle node needs the factor of 2 - there are two paths through it.

B. Greeks

14 items, 30 minutes. Delta, gamma, theta, vega and rho - signs, where each peaks across strike and time, the gamma and theta trade-off, the 0.4 rule, what implied vol is and is not, skew, and pin risk.

In this Outcry section: 14 items in 30 minutes, averaging 129 seconds per item. Wrong answers receive no marks and carry no deduction. Unanswered items score zero. Correct-answer weights are shown on the questions. These are the mock’s rules.

Example 1

Rates move 25 basis points. Two $50 calls, one with 1 month to run and one with 36 months. Which price moves more?

The 1 month one, because its gamma is higher.
The 36 month one.
They move the same - the strike is identical.
The 1 month one, because it is closer to settlement.

Answer The 36 month one.

Rho scales with how long the strike payment is deferred. The rate effect works through K x e^(-rT), and the sensitivity of that to r carries a factor of T, so 36 months has roughly 36 times the rho of 1 month. On short dated options rho is a rounding error next to vega and gamma, which is why traders ignore it on the front month and not on LEAPS.

Example 2

You are short 100 of the $40 calls and the stock closes at exactly $40 on expiry day. What is the problem?

Gamma is infinite there, so the position cannot be hedged at any price.
Nothing - at the strike they are worth zero, so they simply expire.
You do not know how many will be exercised, so you do not know what stock position you are left with.
The options settle in cash at the strike, so the level is irrelevant.

Answer You do not know how many will be exercised, so you do not know what stock position you are left with.

Right at the strike the options are worth nothing but the assignment is a coin flip taken by 100 different holders after the close. Short 100 contracts means anywhere from 0 to 10000 shares delivered, and the news arrives when the market is shut. Hedging to the expected assignment leaves a position either way. The real answer is to be flat well before the bell - pin risk is managed by not having it.

Common questions

How long is the Options Theory and Greeks practice sitting?: Outcry’s mock has 30 items across 2 sections, with 60 minutes of section time. Those figures describe this mock; see the source check for any published format elements.
How does scoring work in Options Theory and Greeks?: Marking on Mechanics, Greeks: +1 correct, 0 wrong, 0 for a skip. Any item-specific mark weight is shown on the question.
Can I go back in Options Theory and Greeks?: This mock has no back navigation: each submitted or skipped question is final.
Will Options Theory and Greeks use the same questions every time?: Outcry generates questions from its own banks. Counts and rules remain fixed; the selected problem types or numeric parameters change. Some archetypes may recur across attempts.
Is Options Theory and Greeks an official assessment?: No. This is Outcry practice with original generated questions. Outcry sets the 30-question, 60-minute paper. It is an options-skills exercise and not any particular employer’s interview round.

Options Industry Council: Greeks

This is an Outcry skills mock, not a named employer’s assessment. Outcry is not affiliated with any firm and generates its own questions.