The increase in value of option leads to low present value of exercise – McqOptions

MCQOPTIONS

1.	The increase in value of option leads to low present value of exercise cost only if
A.	low volatility
B.	interest rates are high
C.	interest rates are low
D.	high volatility
Answer» C. interest rates are low

Discussion

No Comment Found

Related MCQs

According to the Black Scholes model, the selling and buying of the stock have
The situation in financial options in which the strike price is less than current price of stock is classified as
The present value of portfolio is $900 and the current value of stock in portfolio is $1500 then the current option price is
If there is improve in economic condition in foreign countries, the local community of investors start
The salaries of engineers are $3000, the salaries of supervisors are $4000 and the equipment leasing cost is $3000 then fixed setup costs are
The sales budget variance is $47000 and the flexible budget amount is $77000 then the static budget amount is
The measure which provides the feedback on manager performance considering individual aspects only is classified as
The costing technique which classify all the activities in costing hierarchy is classified as
According to loanable funds theory, the fall in interest rates results in to
The flexible budget amount is $57000 and flexible budget variance is $14000 then actual result amount is