Financial Options MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Financial Options, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Financial Options MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Financial Options mcq questions that explore various aspects of Financial Options problems. Each MCQ is crafted to challenge your understanding of Financial Options principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Financial Options MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Financial Options. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Financial Options knowledge to the test? Let's get started with our carefully curated MCQs!

Financial Options MCQs | Page 1 of 7

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Q1.
According to the Black Scholes model, the stocks with the call option pays the
Discuss
Answer: (b).no dividends
Q2.
An exercise of option in future and the part of option call value depends specifically on
Discuss
Answer: (a).PV of exercising cost
Q3.
The yield on Treasury bill with a maturity is classified as a risk free rate but must be equal to an
Discuss
Answer: (c).option expiration
Q4.
The long-term equity anticipation security is usually classified as
Discuss
Answer: (b).long-term options
Q5.
The types of option markets do not include
Discuss
Answer: (c).expiry option
Q6.
In binomial approach of option pricing model, the value of stock is subtracted from call option obligation value to calculate
Discuss
Answer: (a).current value of portfolio
Q7.
According to exercise value and option price, the market value of the option will be zero when
Discuss
Answer: (c).stock price is zero
Q8.
An excess of actual price of option over an exercise value of option is classified as
Discuss
Answer: (a).time value options
Q9.
At the last day when the European and American option can be exercised is classified as
Discuss
Answer: (c).expiration date
Q10.
The current value of stock in portfolio with current option price $20 is $50, then present value of portfolio would be
Discuss
Answer: (a).30
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