Convertible Bond Analysis Quiz with Answers PDF Download – Test 101

MCQ 501: 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

MCQ 502: 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

MCQ 503: 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

MCQ 504: The depository institutions include:

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

MCQ 505: 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