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The Binomial Approach Multiple Choice Questions (MCQ Quiz) with Answers PDF, Binomial Approach MCQ PDF e-Book download to practice Financial Management Tests. Study Financial Options and Applications in corporate Finance Multiple Choice Questions and Answers (MCQs), Binomial Approach quiz answers PDF for online finance classes. The Binomial Approach MCQ App Download: Free learning app for binomial approach, financial options test prep for online BBA business administration.

The MCQ: Current value of stock in portfolio with current option price \$20 is \$50, then present value of portfolio would be; "Binomial Approach" App Download (Free) with answers: 30; 70; 0.0167; 0.3; for online finance classes. Practice Binomial Approach Quiz Questions, download Apple eBook (Free Sample) for online college courses for business management.

## Binomial Approach MCQs: Questions and Answers

MCQ 1:

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
MCQ 2:

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
MCQ 3:

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
MCQ 4:

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
MCQ 5:

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