Q. Consider the call option writing, the probability that a buyer would have positive payoff increases with the

View solution

Q. The right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stock holders is classified as

View solution

Q. The price at which the stock is sold to investors by the investment banks is called

View solution

Q. The underwriter spread of stock is $17000 and the net proceeds of stock are $24000 then the gross proceeds are

View solution

Q. If the time value of an option is $200 and the intrinsic value of an option is $250 then the price of option is

View solution

Q. The type of unit which guarantees that all the buying and selling will be made by traders of exchange is called

View solution

Q. The amount of money involved in swap transaction is classified as

View solution

Q. The up-front fee which must be paid by the buyer to the seller is called

View solution

Q. The capital gain is 9% and the return to stockholder is 18% then the periodic payments of dividends are

View solution

Q. The type of option that can be exercised only at the date of expiration is classified as

View solution

Q. The stock markets in which the already issued stocks are resold and re-bought are classified as

View solution

Q. In public corporation, the claim of fundamental ownership is called

View solution

Q. The time value of an option is added into intrinsic value to calculate

View solution

Q. The orders that are transacted at best available price are classified as

View solution

Q. The orders that are transacted at specified price are considered as

View solution

Q. The example of derivative securities is

View solution

Q. The type of trading member who takes position every day and also liquidate it on the same day is classified as

View solution

Q. The contract which gives the rights to holders to sell or buy the asset at specific time period rather than giving the obligation is classified as

View solution

Q. The type of exchange members who place the buying and selling from the public are classified as

View solution

Q. If the exercise price of an option is $360 and the intrinsic value of an option is $160 then the price of an underlying asset is

View solution