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 6 of 7

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Q51.
The stock option is considered more valuable in the situation when the stock have
Discuss
Answer: (d).highly volatile
Q52.
The pricing model approach in which it is assumed that stock price can have one of the two values of stock is classified as
Discuss
Answer: (d).binomial approach
Q53.
An option which can be exercised any desired time before an expiry date is classified as
Discuss
Answer: (d).American option
Q54.
In the financial planning, a higher strike price leads to call option
Discuss
Answer: (c).price is lower
Q55.
According to the Black Scholes model, the selling and buying of the stock have
Discuss
Answer: (b).transaction costs
Q56.
The stock option is more worthwhile if it is
Discuss
Answer: (a).extremely volatile
Q57.
According to the Black Scholes model, the call option is well exercised on its
Discuss
Answer: (b).expiry date
Q58.
The sellers of options in the financial markets are classified as
Discuss
Answer: (b).option writer
Q59.
In the option pricing, an increasing in option price is due to
Discuss
Answer: (a).time of expiry increases
Q60.
The type of options in which the buyer of options has call on 200 shares in stock is classified as
Discuss
Answer: (a).call option
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