According to futures contract, the long position states the _____ ?
A. sale of futures contract
B. sales of forward contracts
C. purchase of future contract
D. purchase of forward contracts
FINANCE MCQS
Business finance MCQs with answers for online tests. MCQs on financial management with answers for test preparation. Basic finance multiple-choice questions for all competitive exams.
If the stock price of call option is $300 and the exercise price of call option is $260 then the intrinsic value of option is _____ ?
A. 245
B. 40
C. 260
D. 560
Type of voting in which all the directors in voting lists are voted at same time is classified as ____ ?
A. dual class voting
B. limited voting
C. non-cumulative voting
D. cumulative voting
Stock holder who does not have any voting rights in the corporation is considered as _____ ?
A. preferred stockholder
B. cumulative voter
C. sub class voter
D. common stock holder
Consider buying the call option, if the price of stock falls then the buyer of call option has ____ ?
A. low potential of losses
B. high potential of losses
C. high potential of profit
D. low potential of profit
Intrinsic value of an option is $490 and the price of underlying asset is $290 then the exercise price of an option is ____ ?
A. 780
B. 200
C. 290
D. 490
Security which has characteristics of common stock and bonds both at same time is classified as __ ?
A. cumulative stock
B. fundamental stock
C. voted stock
D. preferred stock
Type of contract which involves the immediate exchange of funds and assets is classified as _____ ?
A. future contracts
B. present contract
C. spot contract
D. forward contract
Buying price of stock is $35 and it can be sold for $30 whereas the dividend paid is $6 then return on stock is ____ ?
A. 0.2667
B. 0.3667
C. 0.4667
D. 0.2667
Gross proceeds of stock is $37000 and the underwriter spread is $25000?
A. 12000
B. 62000
C. 25000
D. 37000