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Financial Markets Cerification Guide: Practice Test 3 (Chapter 8)

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The Quiz: When the price of underlying asset increases then the good option is; "World Stock Markets Quiz" App (iOS, Android) with answers: sell the call option, buy the call option, buy the put option, and sell the put option for online finance masters programs. Study Convertible Bond Analysis Quiz Questions, download Google Book (Free Sample) for master's degree in business administration.

World Stock Markets Exam Questions and Answers PDF Download: Test 3

MCQ: 11

When the price of underlying asset increases then the good option is

  1. buy the call option
  2. sell the call option
  3. buy the put option
  4. sell the put option
MCQ: 12

The capital gain is subtracted from return to stockholders to calculate

  1. periodic dividend payments
  2. constant spot rate payment
  3. constant forward rate payment
  4. constant future rate payment
MCQ: 13

Consider the call option writing, the probability that a buyer would have positive payoff increases with the

  1. increase in stock price
  2. decrease in stock price
  3. increase in maturity duration
  4. decrease in maturity duration
MCQ: 14

The right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stock holders is classified as

  1. non-offered rights
  2. preemptive rights
  3. existing rights
  4. securitize rights
MCQ: 15

The price at which the stock is sold to investors by the investment banks is called

  1. Gross proceeds
  2. cumulative proceeds
  3. non-cumulative proceeds
  4. net proceeds

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World Stock Markets Quiz App (Android & iOS)

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