Q.1
Present value of portfolio is Rs 900 and current value of stock in portfolio is Rs 1500 then current option price would be
Q.2
Stock option is considered more valuable in situation when stock have
Q.3
Pricing model approach in which it is assumed that stock price can have one of two values of stock is classified as
Q.4
Greater value of option, larger span of time value is usually results in
Q.5
Price at which European and American options can be exercised is classified as
Q.6
Current option price is added to present value of portfolio for calculating
Q.7
Current option is Rs 700 and current value of stock in portfolio is Rs 1400 then present value of portfolio will be
Q.8
Present value of portfolio is Rs 500 and current option price is Rs 1200 then value of stock included in portfolio will be
Q.9
An option which can be exercised any desired time before an expiry date is classified as
Q.10
In financial planning, a higher strike price leads to call option
Q.11
In options pricing, an exercise price rises from lower to higher which leads to
Q.12
In stock option, a little chance exists for large gain on stock when price of stock
Q.13
Present value of portfolio is Rs 1300 and current value of stock in portfolio is Rs 2300 then current option price will be
Q.14
An investor who buys shares and writes a call option on stock is classified as
Q.15
Value of stock is Rs 1000 and current value of portfolio is Rs 1500 then obligation to cover call option will be
Q.16
According to Black Scholes model, short term seller receives today price which
Q.17
When two portfolios have identical values and payoffs then it is classified as
Q.18
An investor who writes stock call options in his own portfolio is classified as
Q.19
According to put call parity relationship, a call option minus put option in addition with present value of exercise is equal to
Q.20
Current option is Rs 800 and current value of stock in portfolio is Rs 1900 then present value of portfolio would be
Q.21
Second step in binomial approach of option pricing is to define range of values
Q.22
In an option pricing, a rises in risk free rate results in option's value
Q.23
If current price increases from lower to higher then an
Q.24
In financial planning, formula MAX [current price of stock-strike price, 0] is used to calculate
Q.25
In binomial approach of option pricing model, fourth step is to create
Q.26
Current value of portfolio is Rs 550 and to cover an obligation of call option is Rs 200 then value of stock would be
Q.27
According to Black Scholes model, purchaser can borrow fraction of security at risk free interest rate which is
Q.28
Current value of stock included in portfolio is subtracted from current option price to calculate
Q.29
In financial planning, most high option price will lead to
Q.30
An increase in value of option leads to low present value of exercise cost only if it has
Q.31
Third step in binomial approach of option pricing is to
Q.32
A type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as
Q.33
According to put call parity relationship, call option plus present value of exercise price minus stock is to calculate
Q.34
Input call parity relationship, put option minus call option in addition with stock is equal to
Q.35
According to top rating agencies S&P triple-A and double-A rating bonds are classified as an
Q.36
Coupon payment of bond which is fixed at time of issuance
Q.37
According to Black Schools model, stocks with call option pays the
Q.38
Current value of stock in portfolio with current option price Rs 20 is Rs 50, then present value of portfolio would be
Q.39
Situation in financial options in which strike price is less than current price of stock is classified as
Q.40
An exercise of option in future and part of option call value depends specifically on
Q.41
Yield on Treasury bill with a maturity is classified as a risk free rate but must be equal to an
Q.42
Types of option markets do not include
Q.43
In binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate
Q.44
A usage of proceeds of new issue to retire issue with high-rate is classified as
Q.45
If default probability is zero and bond is not called then yield to maturity is
Q.46
Rate on debt that increases as soon market rises is classified as
Q.47
If market interest rate rises above coupon rate then bond will be sold
Q.48
Bonds that can be converted into shares of common stock are classified as
Q.49
Input call parity relationship, present value of exercise price is added to call option which is equal to
Q.50
Stated value of bonds or face value is considered as
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