Just a couple.  You should know what is meant by an option's "premium" and its "strike price"'.

Premium - Used in connection with options, premium has the same meaning as when used in connection with insurance.  It's the price (cost) that you pay to buy a given option. (See question 11 for an explanation of how option premiums are determined).

Strike Price - This is the specific dollars and cents price at which the option gives you the right to assume a long futures position in the case of a call, or a short futures position in the case of a put. The strike price is stated in the option.

Example: If a call option gives you the right to buy 1,000 barrels (42,000 gallons) of crude oil at a price of $25.00 a barrel, 25 is the strike price. At any given time, there is likely to be trading in options with a number of different strike prices.

When you buy a call, you hope the market price of the commodity will move above the option's strike price by an amount greater than the cost of the option, thereby causing the option to become profitable.  When you buy a put, you hope that the market price of the commodity will decline below the option's strike price by an amount greater than the cost of the option.