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MCQs

Total Questions : 176 | Page 7 of 18 pages
Question 61. The prices that are adjusted day to day to picture the current conditions of future markets are classified as
  1.    market future prices
  2.    market to market prices
  3.    market to invest prices
  4.    present market prices
 Discuss Question
Answer: Option B. -> market to market prices
Answer: (b).market to market prices
Question 62. The swaps that are classified as long term contracts are
  1.    currency swaps
  2.    notion swaps
  3.    floating swaps
  4.    fixed swaps
 Discuss Question
Answer: Option A. -> currency swaps
Answer: (a).currency swaps
Question 63. The capital gains are 14% and the periodic payments to stock holder are 11% then the return on stock investment for stock holder is
  1.    0.3
  2.    0.24
  3.    0.25
  4.    0.15
 Discuss Question
Answer: Option B. -> 0.24
Answer: (b).0.24
Question 64. The intrinsic value of option is subtracted from exercise price of an option to calculate
  1.    forward price of asset
  2.    price of underlying asset
  3.    future price of asset
  4.    spot price of asset
 Discuss Question
Answer: Option B. -> price of underlying asset
Answer: (b).price of underlying asset
Question 65. If the price of an option is $475 and the time value of money is $375 then the intrinsic value of an option is
  1.    375
  2.    100
  3.    475
  4.    850
 Discuss Question
Answer: Option B. -> 100
Answer: (b).100
Question 66. The prospectus which describe the new securities are distributed before their registration is classified as
  1.    red herring prospectus
  2.    white herring prospectus
  3.    preemptive prospectus
  4.    securitized prospectus
 Discuss Question
Answer: Option A. -> red herring prospectus
Answer: (a).red herring prospectus
Question 67. The type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as
  1.    non participating preferred stock
  2.    participating preferred stock
  3.    non-cumulative preferred stock
  4.    cumulative preferred stock
 Discuss Question
Answer: Option D. -> cumulative preferred stock
Answer: (d).cumulative preferred stock
Question 68. The form of market efficiency which states that prices of stock reflects the public and private information of the firm is classified as
  1.    weak form of market efficiency
  2.    strong form of market efficiency
  3.    semi-strong form market efficiency
  4.    expensive form market efficiency
 Discuss Question
Answer: Option B. -> strong form of market efficiency
Answer: (b).strong form of market efficiency
Question 69. The under writer spread is subtracted from gross proceeds to calculate
  1.    Gross proceeds
  2.    cumulative proceeds
  3.    non-cumulative proceeds
  4.    net proceeds
 Discuss Question
Answer: Option D. -> net proceeds
Answer: (d).net proceeds
Question 70. The difference between the intrinsic value of option and the price of option is classified as
  1.    spot value of option
  2.    time value of US treasury
  3.    time value of option
  4.    time value of bond
 Discuss Question
Answer: Option C. -> time value of option
Answer: (c).time value of option

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