The intrinsic value of call option is considered as in the money if:
A. stock price > exercise price
B. stock price treasury price
C. treasury price < bond price
D. None of These
The type of trade members who take position for short period of time or sometimes for only few minutes are classified as:
A. scalpers
B. explorers
C. temporary position holders
D. professional position holders
The intrinsic value of call option is considered as out of the money, if:
A. bond price > treasury price
B. treasury price exercise price
C. stock price < exercise price
D. None of These
The type of contract which involves the exchange of assets that will occur in future at the price settled daily, is classified as:
A. spot contract
B. forward contract
C. future contracts
D. present contract
The prices that are adjusted day to day to picture the current conditions of future markets are classified as:
A. market future prices
B. market to market prices
C. market to invest prices
D. present market prices
The intrinsic value of option is subtracted from exercise price of an option to calculate:
A. forward price of asset
B. price of underlying asset
C. future price of asset
D. spot price of asset
The under writer spread is subtracted from gross proceeds to calculate:
A. Gross proceeds
B. cumulative proceeds
C. non-cumulative proceeds
D. net proceeds
The difference between the intrinsic value of option and the price of option is classified as:
A. spot value of option
B. time value of US treasury
C. time value of option
D. time value of bond
The position which occurs because of selling floor and buying cap is classified as:
A. floating collar
B. fixed collar
C. currency collar
D. collar
Consider buying the put option, if the price is lower at the expiration date of option then the:
A. liquidity will be higher
B. loss will be higher
C. profit will be lower
D. profit will be higher
