The price of an option is subtracted form time value of option to calculate:
A. book value index
B. market index
C. intrinsic value
D. extrinsic value
Consider the buying of put option, the probability that a buyer would have negative payoff increases with the:
A. increase in stock price
B. decrease in stock price
C. increase in maturity duration
D. decrease in maturity duration
The markets in which the derivatives are traded, are classified as:
A. assets backed market
B. cash flow backed markets
C. mortgage backed markets
D. derivative securities markets
The orders that are transacted at best available price are classified as:
A. post order
B. transacted order
C. market order
D. available order
The type of trading member who takes position every day and also liquidate it on the same day is classified as:
A. day traders
B. broker traders
C. non-position traders
D. commercial traders
The type of exchange members who place the buying and selling from the public are classified as:
A. floor broker
B. roof broker
C. broker of auction
D. leverage investment broker
The time period between the issuance of shares and filing of registration to Securities Exchange Commission is classified as:
A. filing period
B. quiet period
C. silence period
D. noise period
The type of option that gives the right to buyer to buy the underlying option at specific exercise price is considered as:
A. European option
B. Australian option
C. call option
D. put option
The put option considering interest rates and have multiple exercise dates is classified as:
A. swaps multiplier
B. notion multiplier
C. floor
D. cap
The fixed price at which the stock is purchased from issuer by the investment banks is called:
A. non-cumulative proceeds
B. net proceeds
C. Gross proceeds
D. cumulative proceeds
