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Financial Management MCQs – Practice Test 9 (Chapter 6)

Financial Options and Applications in corporate Finance MCQs with Answers PDF – Download Test 9

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Financial Options & Applications in corporate Finance MCQs PDF Download – Practice Test 9

MCQ 41: The price at which the European and American options can be exercised is classified as:

  1. exercise price
  2. strike price
  3. horizon price
  4. Both A and B

MCQ 42: The current option price is added to present value of portfolio for calculating:

  1. future value of portfolio
  2. current value of stock
  3. future value of stock
  4. present value of portfolio

MCQ 43: In the options pricing, an exercise price rises from lower to higher which leads to:

  1. volatile options
  2. option value increases
  3. option value decreases
  4. option value stable

MCQ 44: In the stock option, a little chance exists for large gain on stock when the price of stock:

  1. have volatile movement
  2. moves freely
  3. rarely moves
  4. stays same

MCQ 45: According to the Black Scholes model, the rate which is constant and known is classified as:

  1. short term return rate
  2. long term return rate
  3. risk free interest rate
  4. risky rate of return

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