The price of an option is subtracted form time value of option to calculate?
A. extrinsic value
B. intrinsic value
C. book value index
D. market index
FINANCE MCQS
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Consider the buying of put option, the probability that a buyer would have negative payoff increases with the?
A. increase in maturity duration
B. decrease in maturity duration
C. decrease in stock price
D. increase in stock price
Markets in which the derivatives are traded, are classified as?
A. derivative securities markets
B. mortgage backed markets
C. assets backed market
D. cash flow backed markets
Orders that are transacted at best available price are classified as?
A. market order
B. available order
C. post order
D. transacted order
The type of trading member who takes position every day and also liquidate it on the same day is classified as?
A. non-position traders
B. commercial traders
C. day traders
D. broker traders
Time period between the issuance of shares and filing of registration to Securities Exchange Commission is classified as?
A. quiet period
B. leverage investment broker
C. roof broker
D. broker of auction
Orders that are transacted at specified price are considered as?
A. unlimited order
B. assets order
C. limit order
D. red herring order
Time value of an option is added into intrinsic value to calculate?
A. price of an option
B. appreciated value of option
C. market index of an option
D. depreciated value of option
In public corporation, the claim of fundamental ownership is called?
A. corporate stock
B. claimed stock
C. fundamental stock
D. common stock
The type of option that can be exercised only at the date of expiration is classified as?
A. Australian option
B. American option
C. Canadian option
D. European option