Stock Markets: Option Values Quiz with Answers PDF Download – Test 5

MCQ 21: The price of an option is subtracted form time value of option to calculate:

1. book value index
2. market index
3. intrinsic value
4. extrinsic value

MCQ 22: For given change in interest rates, the percentage change in the present value of bond is classified as:

1. price sensitivity
2. yield sensitivity
3. maturity sensitivity
4. premium sensitivity

MCQ 23: If the intrinsic value of an option is $450 and the price of an option is $560 then the time value of an option is:

1. 110
2. 1010
3. 450
4. 560

MCQ 24: The larger fluctuations in portfolio value of foreign exchange of financial institutions leads to:

1. greater liquidity of assets
2. greater volatility of rates
3. lesser volatility of rates
4. lesser liquidity of assets

MCQ 25: The type of swaps in which the fixed payments of interest are exchanged by two counterparties for floating payments of interest are called:

1. float-fixed swaps
2. interest rate swaps
3. indexed swaps
4. counter party swaps