Convertible Bond Analysis Quiz Questions and Answers PDF - 57

MCQ 281: The call premium of bond is $560 and the call price of bond is $340 then face value of the bond is

1. 1.65
2. 220
3. 900
4. 0.0165

MCQ 282: In the syndicate, the leading bank which negotiates the transaction to issuing bank on behalf of the syndicate is called

1. originating house
2. non originating house
3. investment house
4. non securitize house

MCQ 283: When the earnings are reinvested instead of payments of dividends, then the capital gains

1. must increases
2. must decreases
3. must be zero
4. must be one

MCQ 284: Consider buying the call option, if the price of stock rises then the buyer of call option has

1. low potential of losses
2. high potential of losses
3. high potential of profit
4. low potential of profit

MCQ 285: The intrinsic value of call option is considered as in the money if

1. stock price > exercise price
2. stock price < exercise price
3. bond price > treasury price
4. treasury price < bond price