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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. In financial planning, the formula MAX[current price of stock-strike price‚0] is used to calculate

View solution

Q. According to put call parity relationship, the call option plus present value of exercise price minus stock is to calculate

View solution

Q. When two portfolios have identical values and payoffs then it is classified as

View solution

Q. The greater value of the option, the larger span of time value is usually results in

View solution

Q. The price at which the European and American options can be exercised is classified as

View solution

Q. The current option price is added to present value of portfolio for calculating

View solution

Q. In the options pricing, an exercise price rises from lower to higher which leads to

View solution

Q. In the stock option, a little chance exists for large gain on stock when the price of stock

View solution

Q. According to the Black Scholes model, the rate which is constant and known is classified as

View solution

Q. According to the Black Scholes model, the trading of securities and the stock prices move respectively

View solution

Q. In binomial approach of option pricing model, the last step for finding an option is

View solution

Q. The type of options that do not have the stock in portfolio to back up the options is classified as

View solution

Q. The market value of the option which is out-of-money is

View solution

Q. The present value of portfolio is $900 and the current value of stock in portfolio is $1500 then the current option price would be

View solution