The security which has characteristics of common stock and bonds both at same time is classified as:
A. preferred stock
B. voted stock
C. cumulative stock
D. fundamental stock
The capital gains are 14% and the periodic payments to stock holder are 11% then the return on stock investment for stock holder is:
A. 0.3
B. 0.24
C. 0.25
D. 0.15
The swaps that are classified as long term contracts are:
A. currency swaps
B. notion swaps
C. floating swaps
D. fixed swaps
The capital gains and dividends are considered as components of:
A. return
B. equity
C. spot rate contracts
D. forward rate contracts
The feature of stock which allows stock holders to buy the shares below than market price is called:
A. shares offering
B. price offering
C. rights offering
D. stock offering
The periodic payments of dividends are subtracted from return to stockholders to calculate:
A. gain on spot contract
B. loss on spot contract
C. gain on capital
D. loss on capital
The Black Scholes model consider the factors which affects an option price, the factors are:
A. spot price of asset
B. exercise price
C. price volatility
D. all of the above
The call option considering interest rates and have multiple exercise dates is classified as:
A. floor
B. cap
C. swaps multiplier
D. notion multiplier
Consider buying the call option, if the price of stock rises then the buyer of call option has:
A. low potential of losses
B. high potential of losses
C. high potential of profit
D. low potential of profit
The sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to:
A. return to common stockholders
B. return on premium bonds
C. return to stock holder
D. return to preferred stock
