The types of corporate stock that are traded in exchange markets are:
A. common stock
B. preferred stock
C. quoted stock
D. both A and B
The intrinsic value of option is $280 and the price of option is $350 then the time value of option is:
A. 125
B. 135
C. 280
D. 70
In interest rate swap transaction, the party who pays the fixed payments of interest is classified as:
A. notion buyer
B. notion seller
C. swap buyer
D. swap seller
The type of exchange members who only buy and sell for their personal account are classified as:
A. non-investment traders
B. professional traders
C. commercial traders
D. investment traders
The markets in which new securities are issued by the corporations to raise funds are called:
A. primary markets
B. secondary markets
C. Gross markets
D. proceeds markets
The difference between net proceeds and gross proceeds is called:
A. non-participating spread
B. participating spread
C. under writer spread
D. over writer spread
The composite value of traded stocks group of secondary markets is classified as:
A. stock index
B. primary index
C. stock market index
D. limited liability index
The contract which gives the rights to holders to sell or buy the asset at specific time period rather than giving the obligation is classified as:
A. option
B. contract
C. obligatory contract
D. non-obligatory contract
The example of derivative securities is:
A. return backed security
B. mortgage backed security
C. cash flow backed security
D. interest backed security
The orders that are transacted at specified price are considered as:
A. red herring order
B. limit order
C. unlimited order
D. assets order
