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Total Questions : 176 | Page 4 of 18 pages
Question 31. The type of trading member who takes position every day and also liquidate it on the same day is classified as
  1.    day traders
  2.    broker traders
  3.    non-position traders
  4.    commercial traders
 Discuss Question
Answer: Option A. -> day traders
Answer: (a).day traders
Question 32. The intrinsic value of put option is
  1.    exercise price ⁄ stock price
  2.    exercise price - stock price
  3.    exercise price + stock price
  4.    exercise price x stock price
 Discuss Question
Answer: Option B. -> exercise price - stock price
Answer: (b).exercise price - stock price
Question 33. The price of underlying asset is added into intrinsic value of option to calculate
  1.    forward price of option
  2.    exercise price of option
  3.    book value of option
  4.    spot price of option
 Discuss Question
Answer: Option B. -> exercise price of option
Answer: (b).exercise price of option
Question 34. The indexes in which the price of stock of companies listed in stock market index are added together and is divided by an adjusted value are classified as
  1.    herring indexes
  2.    group indexes
  3.    John indexes
  4.    Dow Indexes
 Discuss Question
Answer: Option D. -> Dow Indexes
Answer: (d).Dow Indexes
Question 35. The firm in which the different voting rights are assigned for different classes of stock is classified as
  1.    divided class firm
  2.    sub class firm
  3.    dual class firm
  4.    One class firm
 Discuss Question
Answer: Option C. -> dual class firm
Answer: (c).dual class firm
Question 36. The markets in which new securities are issued by the corporations to raise funds are called
  1.    primary markets
  2.    secondary markets
  3.    Gross markets
  4.    proceeds markets
 Discuss Question
Answer: Option A. -> primary markets
Answer: (a).primary markets
Question 37. The markets in which the derivatives are traded, are classified as
  1.    assets backed market
  2.    cash flow backed markets
  3.    mortgage backed markets
  4.    derivative securities markets
 Discuss Question
Answer: Option D. -> derivative securities markets
Answer: (d).derivative securities markets
Question 38. The price of an option is subtracted form time value of option to calculate
  1.    book value index
  2.    market index
  3.    intrinsic value
  4.    extrinsic value
 Discuss Question
Answer: Option C. -> intrinsic value
Answer: (c).intrinsic value
Question 39. Consider the buying of put option, the probability that a buyer would have negative payoff increases with the
  1.    increase in stock price
  2.    decrease in stock price
  3.    increase in maturity duration
  4.    decrease in maturity duration
 Discuss Question
Answer: Option A. -> increase in stock price
Answer: (a).increase in stock price
Question 40. If the intrinsic value of an option is $450 and the price of an option is $560 then the time value of an option is
  1.    110
  2.    1010
  3.    450
  4.    560
 Discuss Question
Answer: Option A. -> 110
Answer: (a).110

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