The intrinsic value of option is subtracted from exercise price of an option to calculate?
A. price of underlying asset
B. spot price of asset
C. forward price of asset
D. future price of asset
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The under writer spread is subtracted from gross proceeds to calculate?
A. cumulative proceeds
B. non-cumulative proceeds
C. net proceeds
D. Gross proceeds
Difference between the intrinsic value of option and the price of option is classified as?
A. time value of option
B. time value of bond
C. spot value of option
D. time value of US treasury
The type of option that can be exercised before the date of expiration as well as on expiry date is classified as?
A. American option
B. Canadian option
C. Australian option
D. European option
Underwriter spread of stock is added to net proceeds to calculate the value of?
A. Gross proceeds
B. non participation proceeds
C. over writer spread
D. participation proceeds
Gross proceeds of stock is $24000 and the net proceeds are $35000 then the under writers spread is?
A. 16750
B. 11000
C. 15000
D. 13500
The position which occurs because of selling floor and buying cap is classified as?
A. fixed collar
B. currency collar
C. collar
D. floating collar
Under writer spread is $47500 and the gross proceeds are $34000 then net proceeds are?
A. 34000
B. 13500
C. 81500
D. 47500
Stock prices of five companies are $50, $60, $55, $58 and $63 then the initial value of price weighted index is ?
A. 129
B. 78
C. 57.2
D. 12
When the earnings are reinvested instead of payments of dividends, then the capital gains?
A. must be zero
B. must be one
C. must increases
D. must decreases