The speed with which the prices of stocks are adjusted to unexpected news related to interest rates is called:
A. news efficiency
B. adjusted efficiency
C. expected efficiency
D. market efficiency
The difference between price of underlying asset and exercise price of option is classified as:
A. extrinsic value of European option
B. intrinsic value of option
C. extrinsic value of option
D. intrinsic value of European option
The number of shares outstanding are multiplied to price of stock to calculate:
A. secondary market values
B. current market values
C. past market values
D. primary market values
The particular place at which the transactions of New York stock exchange occurs is classified as:
A. trading post
B. issuance post
C. silence post
D. sellers post
The major participants in forward markets are:
A. commercial banks
B. broker deals
C. investment banks
D. all of the above
The stock markets in which the already issued stocks are resold and re-bought are classified as:
A. red herring stock market
B. preemptive stock market
C. silence stock market
D. secondary stock markets
The up-front fee which must be paid by the buyer to the seller is called:
A. call premium
B. discount premium
C. strike premium
D. exercise premium
The amount of money involved in swap transaction is classified as:
A. notion principal
B. swap principal
C. transaction principal
D. time value of swap
The price at which the stock is sold to investors by the investment banks is called:
A. Gross proceeds
B. cumulative proceeds
C. non-cumulative proceeds
D. net proceeds
When the price of underlying asset increases then the good option is:
A. buy the call option
B. sell the call option
C. buy the put option
D. sell the put option
