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MCQs

Total Questions : 176 | Page 16 of 18 pages
Question 151. The process in which the group of investment banks distribute the securities is classified as
  1.    task groups
  2.    syndicate
  3.    investment groups
  4.    securitize groups
 Discuss Question
Answer: Option B. -> syndicate
Answer: (b).syndicate
Question 152. The type of option that can be exercised before the date of expiration as well as on expiry date is classified as
  1.    Australian option
  2.    American option
  3.    European option
  4.    Canadian option
 Discuss Question
Answer: Option B. -> American option
Answer: (b).American option
Question 153. The intrinsic value of an option is $490 and the price of underlying asset is $290 then the exercise price of an option is
  1.    290
  2.    780
  3.    490
  4.    200
 Discuss Question
Answer: Option C. -> 490
Answer: (c).490
Question 154. The method of auction of future contract in which the traders sell their future contracts at a specified price, by crying out in louder voices is classified as
  1.    traders gathered auction
  2.    close outcry auction
  3.    specified auction
  4.    open outcry auction
 Discuss Question
Answer: Option D. -> open outcry auction
Answer: (d).open outcry auction
Question 155. The gross proceeds of stock is $24000 and the net proceeds are $35000 then the under writers spread is
  1.    15000
  2.    13500
  3.    16750
  4.    11000
 Discuss Question
Answer: Option D. -> 11000
Answer: (d).11000
Question 156. The underwriter spread of stock is added to net proceeds to calculate the value of
  1.    over writer spread
  2.    Gross proceeds
  3.    participation proceeds
  4.    non participation proceeds
 Discuss Question
Answer: Option B. -> Gross proceeds
Answer: (b).Gross proceeds
Question 157. The major participants in forward markets are
  1.    commercial banks
  2.    broker deals
  3.    investment banks
  4.    all of the above
 Discuss Question
Answer: Option D. -> all of the above
Answer: (d).all of the above
Question 158. Foreign bonds issued in Japan are known
  1.    bulldog bonds
  2.    dragon bonds
  3.    Yankee bonds
  4.    samurai bonds
 Discuss Question
Answer: Option D. -> samurai bonds
Answer: (d).samurai bonds
Question 159. Largest number of buyers and sellers, greater the
  1.    liquidity
  2.    speculation
  3.    hedging
  4.    forward rate
 Discuss Question
Answer: Option A. -> liquidity
Answer: (a).liquidity
Question 160. More instability in currency is called as
  1.    country risk
  2.    financial risk
  3.    currency risk
  4.    liquidity risk
 Discuss Question
Answer: Option C. -> currency risk
Answer: (c).currency risk

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