Convertible Bond Analysis Quiz Questions and Answers PDF Download - 101

The current market price is multiplied to the conversion rate received on conversion to calculate

1. conversion value
2. current value
3. market value
4. stock value

The form of market efficiency in which stock current prices reflect the volume information and historic prices of company is classified as

1. weak form of market efficiency
2. strong form of market efficiency
3. semi-strong form market efficiency
4. expensive form market efficiency

When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as

1. interest rate risk
2. channel rate risk
3. economic risk
4. issuance risk

The depository institutions include

1. mutual funds
2. commercial banks and thrifts
3. savings banks
4. credit unions

The difference between price of underlying asset and exercise price of option is classified as

1. extrinsic value of European option
2. intrinsic value of option
3. extrinsic value of option
4. intrinsic value of European option