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 5 of 7

Q41.
The price at which the European and American options can be exercised is classified as
Discuss
Answer: (d).both a and b
Q42.
The current option price is added to present value of portfolio for calculating
Discuss
Answer: (b).current value of stock
Q43.
In the options pricing, an exercise price rises from lower to higher which leads to
Discuss
Answer: (c).option value decreases
Q44.
In the stock option, a little chance exists for large gain on stock when the price of stock
Discuss
Answer: (c).rarely moves
Q45.
According to the Black Scholes model, the rate which is constant and known is classified as
Discuss
Answer: (c).risk free interest rate
Q46.
According to the Black Scholes model, the trading of securities and the stock prices move respectively
Discuss
Answer: (d).continuously and randomly
Q47.
In binomial approach of option pricing model, the last step for finding an option is
Discuss
Answer: (d).call price
Q48.
The type of options that do not have the stock in portfolio to back up the options is classified as
Discuss
Answer: (c).naked options
Q49.
The market value of the option which is out-of-money is
Discuss
Answer: (a).greater than zero
Q50.
The present value of portfolio is $900 and the current value of stock in portfolio is $1500 then the current option price would be
Discuss
Answer: (d).600
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