Convertible Bond Analysis Quiz with Answers PDF Download – Test 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