Question

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

a.

−$700

b.

2100

c.

700

d.

0.02

Answer: (c).700

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Recommended Subjects

Are you eager to expand your knowledge beyond Financial Management and Financial Markets? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!