Q. According to the Black Scholes model, the purchaser can borrow fraction of security at risk free interest rate which is

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Q. The type of option which cannot be exercised before an expiry date which is classified as

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Q. In put call parity relationship, the put option minus call option in addition with stock is equal to

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Q. The current option is $800 and the current value of stock in portfolio is $1900 then the present value of portfolio would be

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Q. The second step in binomial approach of option pricing is to define range of values

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Q. An increase in value of option leads to low present value of exercise cost only if it has

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Q. The third step in binomial approach of option pricing is to

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Q. A type of contract in which the contract holder has the right to sell an asset at specific period for predetermining price is classified as

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Q. According to the Black Scholes model, the short term seller receives today's price which

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Q. An investor who writes stock call options in his own portfolio is classified as

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Q. According to put call parity relationship, a call option minus put option in addition with present value of exercise is equal to

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Q. The current value of stock included in portfolio is subtracted from current option price to calculate

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Q. In financial planning, the most high option price will lead to

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Q. The current option is $700 and the current value of stock in portfolio is $1400 then the present value of portfolio will be

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Q. The present value of portfolio is $500 and the current option price is $1200 then the value of stock included in portfolio will be

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Q. The present value of portfolio is $1300 and the current value of stock in portfolio is $2300 then the current option price will be

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Q. An investor who buys shares and writes a call option on stock is classified as

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Q. The value of stock is $1000 and the current value of portfolio is $1500 then the obligation to cover call option will be

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Q. In an option pricing, a rises in risk free rate results in option's value

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Q. If the current price increases from lower to higher then an

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