Put Call Parity Relationship Multiple Choice Questions with Answers – PDF Download

MCQ 1: The stock market theory which states that stocks are in equilibrium and impossible for investors to beat the market is classified as an:

1. inefficient market hypothesis
2. efficient market hypothesis
3. efficient stock hypothesis
4. inefficient stock hypothesis

MCQ 2: In put call parity relationship, the present value of exercise price is added to call option which is equal to:

1. put option stock
2. call option + stock
3. call option + market price
4. put option + market price

MCQ 3: In put call parity relationship, the put option minus call option in addition with stock is equal to:

1. exercise price present value
2. exercise price future value
3. time line value
4. time value of bond

MCQ 4: According to put call parity relationship, a call option minus put option in addition with present value of exercise is equal to:

1. binomial property
2. constant property
3. constant and variable property
4. stock

MCQ 5: According to put call parity relationship, the call option plus present value of exercise price minus stock is to calculate:

1. present value of option
2. call option
3. put option
4. future value of option