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 4 of 7

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Q31.
The present value of portfolio is $500 and the current option price is $1200 then the value of stock included in portfolio will be
Discuss
Answer: (a).1700
Q32.
The present value of portfolio is $1300 and the current value of stock in portfolio is $2300 then the current option price will be
Discuss
Answer: (b).1000
Q33.
An investor who buys shares and writes a call option on stock is classified as
Discuss
Answer: (c).hedger
Q34.
The value of stock is $1000 and the current value of portfolio is $1500 then the obligation to cover call option will be
Discuss
Answer: (d).500
Q35.
In an option pricing, a rises in risk free rate results in option's value
Discuss
Answer: (b).slight increases
Q36.
If the current price increases from lower to higher then an
Discuss
Answer: (b).option value will increase
Q37.
In financial planning, the formula MAX[current price of stock-strike priceβ€š0] is used to calculate
Discuss
Answer: (b).exercise value
Q38.
According to put call parity relationship, the call option plus present value of exercise price minus stock is to calculate
Discuss
Answer: (c).put option
Q39.
When two portfolios have identical values and payoffs then it is classified as
Discuss
Answer: (d).put call parity relationship
Q40.
The greater value of the option, the larger span of time value is usually results in
Discuss
Answer: (b).longer call option
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