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Financial Management MCQ Questions - Topic

Binomial Approach Multiple Choice Questions (MCQ), Binomial Approach quiz answers PDF with financial management live worksheets for online degrees. Solve financial options and applications in corporate finance Multiple Choice Questions and Answers (MCQs), Binomial Approach quiz questions for online bachelor's degree in business management. Binomial Approach Interview Questions PDF: binomial approach, financial options test prep to learn online certificate courses.

"In binomial approach of option pricing model, the value of stock is subtracted from call option obligation value to calculate" MCQ PDF on binomial approach with choices *current value of portfolio, future value of portfolio, put option value, and call option value* for online bachelor's degree in business management. Solve binomial approach quiz questions for merit scholarship test and certificate programs for online business degree.

**MCQ**: In binomial approach of option pricing model, the value of stock is subtracted from call option obligation value to calculate

current value of portfolio

future value of portfolio

put option value

call option value

a

**MCQ**: The current value of stock in portfolio with current option price $20 is $50, then present value of portfolio would be

30

70

0.0167

0.3

a

**MCQ**: The value of stock is $250 and the call option obligation is $100 then the current value of portfolio would be

0.35

150

350

2.5

b

**MCQ**: In binomial approach of option pricing model, the fourth step is to create

equalize the domain of payoff

equalize the ending price

riskless investment

high risky investment

c

**MCQ**: The current value of portfolio is $550 and to cover an obligation of call option is $200 then the value of stock would be

350

0.0275

750

2.75

c

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