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Finance Mcqs

An option that gives investors right to sell a stock at predefined price is classified as____________?

  • (A)  Put option
  • (B)  Call option
  • (C)  Money back options
  • (D)  Out of money options
Submitted By :Ali Uppal


An increase in value of option leads to low present value of exercise cost only if it has____________?

  • (A)  Low volatility
  • (B)  Interest rates are high
  • (C)  Interest rates are low
  • (D)  High volatility
Submitted By :Ali Uppal


In financial planning, most high option price will lead to__________?

  • (A)  Longer option period
  • (B)  Smaller option period
  • (C)  Lesser price
  • (D)  Higher price
Submitted By :Ali Uppal


An investor who writes stock call options in his own portfolio is classified as__________?

  • (A)  Due option
  • (B)  Covered option
  • (C)  Undue option
  • (D)  Uncovered option
Submitted By :Ali Uppal


An investor who buys shares and writes a call option on stock is classified as__________?

  • (A)  Put investor
  • (B)  Call investor
  • (C)  Hedger
  • (D)  Volatile hedge
Submitted By :Ali Uppal


Greater value of option, larger span of time value is usually results in__________?

  • (A)  Shorter call option
  • (B)  Longer call option
  • (C)  Longer put option
  • (D)  Shorter put option
Submitted By :Ali Uppal


If current price increases from lower to higher then an____________?

  • (A)  Option value equal to one
  • (B)  Option value will increase
  • (C)  Option value will decrease
  • (D)  Option value equal to zero
Submitted By :Ali Uppal


According to Black Scholes model, selling and buying of stock have_______?

  • (A)  Discount rate
  • (B)  Transaction costs
  • (C)  No transaction costs
  • (D)  No discounts
Submitted By :Ali Uppal


Submitted By :Ali Uppal


Cost which has occurred already and not affected by decisions is classified as______________?

  • (A)  Sunk cost
  • (B)  Occurred cost
  • (C)  Weighted cost
  • (D)  Mean cost
Submitted By :Ali Uppal