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Binomial Approach MCQ with Answers PDF Download eBook

Binomial Approach Multiple Choice Questions (MCQ) to practice binomial approach quiz answers PDF, finance worksheets for online degrees. Solve financial options and applications in corporate finance Multiple Choice Questions and Answers (MCQs), "Binomial Approach" quiz questions PDF for online bachelor's degree in business management. Learn 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" Multiple Choice Questions (MCQ) 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.

MCQs on Binomial Approach PDF Download eBook

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

  1. current value of portfolio
  2. future value of portfolio
  3. put option value
  4. 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

  1. 30
  2. 70
  3. 0.0167
  4. 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

  1. 0.35
  2. 150
  3. 350
  4. 2.5

B

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

  1. equalize the domain of payoff
  2. equalize the ending price
  3. riskless investment
  4. 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

  1. 350
  2. 0.0275
  3. 750
  4. 2.75

C