The time value of an option is added into intrinsic value to calculate:
A. market index of an option
B. depreciated value of option
C. appreciated value of option
D. price of an option
In public corporation, the claim of fundamental ownership is called:
A. common stock
B. fundamental stock
C. corporate stock
D. claimed stock
The type of option that can be exercised only at the date of expiration is classified as:
A. European option
B. Canadian option
C. Australian option
D. American option
The capital gain is 9% and the return to stockholder is 18% then the periodic payments of dividends are:
A. 0.18
B. 0.27
C. 0.25
D. 0.09
The type of unit which guarantees that all the buying and selling will be made by traders of exchange is called:
A. trading house
B. guarantee house
C. clearing house
D. professional house
The capital gain is subtracted from return to stockholders to calculate:
A. periodic dividend payments
B. constant spot rate payment
C. constant forward rate payment
D. constant future rate payment
The type of contract which involves the future exchange of assets at a specified price is classified as:
A. future contracts
B. present contract
C. spot contract
D. forward contract
A swap that is used to evade the risk of exchange rate exists because of currency mismatching is classified as:
A. floating swaps
B. fixed swaps
C. currency swaps
D. notion swaps
The preferred stock is considered as hybrid security because it includes:
A. representation of ownership interest
B. fixed periodic payment
C. higher liquidity
D. both A and B
If the intrinsic value of an option is $450 and the price of an option is $560 then the time value of an option is:
A. 110
B. 1010
C. 450
D. 560
