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Total Questions : 176 | Page 18 of 18 pages
Question 171. The up-front fee which must be paid by the buyer to the seller is called
  1.    call premium
  2.    discount premium
  3.    strike premium
  4.    exercise premium
 Discuss Question
Answer: Option A. -> call premium
Answer: (a).call premium
Question 172. The type of preferred stock in which the dividend does not increase or decrease with the increase or decrease in profit of firm is classified as
  1.    non-cumulative preferred stock
  2.    cumulative preferred stock
  3.    non-participating preferred stock
  4.    participating preferred stock
 Discuss Question
Answer: Option C. -> non-participating preferred stock
Answer: (c).non-participating preferred stock
Question 173. The fixed price at which the stock is purchased from issuer by the investment banks is called
  1.    non-cumulative proceeds
  2.    net proceeds
  3.    Gross proceeds
  4.    cumulative proceeds
 Discuss Question
Answer: Option B. -> net proceeds
Answer: (b).net proceeds
Question 174. The put option considering interest rates and have multiple exercise dates is classified as
  1.    swaps multiplier
  2.    notion multiplier
  3.    floor
  4.    cap
 Discuss Question
Answer: Option C. -> floor
Answer: (c).floor
Question 175. The agreement between two parties to exchange cash flows in future and the cash flows are based on underlying instruments is classified as
  1.    swaps
  2.    interchange
  3.    exchange
  4.    index
 Discuss Question
Answer: Option A. -> swaps
Answer: (a).swaps
Question 176. The difference between net proceeds and gross proceeds is called
  1.    non-participating spread
  2.    participating spread
  3.    under writer spread
  4.    over writer spread
 Discuss Question
Answer: Option C. -> under writer spread
Answer: (c).under writer spread

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