MCQOPTIONS
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MCQOPTIONS
This section includes 175 Mcqs, each offering curated multiple-choice questions to sharpen your Financial Management/Financial Markets knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
The orders that are transacted at best available price are classified as |
| A. | post order |
| B. | transacted order |
| C. | market order |
| D. | available order |
| Answer» D. available order | |
| 152. |
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 |
| Answer» B. contract | |
| 153. |
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 |
| Answer» B. broker traders | |
| 154. |
The example of derivative securities is |
| A. | return backed security |
| B. | mortgage backed security |
| C. | cash flow backed security |
| D. | interest backed security |
| Answer» C. cash flow backed security | |
| 155. |
The orders that are transacted at specified price are considered as |
| A. | red herring order |
| B. | limit order |
| C. | unlimited order |
| D. | assets order |
| Answer» C. unlimited order | |
| 156. |
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 |
| Answer» D. put option | |
| 157. |
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 |
| Answer» D. limited liability index | |
| 158. |
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 |
| Answer» C. silence period | |
| 159. |
If the exercise price of an option is $360 and the intrinsic value of an option is $160 then the price of an underlying asset is |
| A. | 200 |
| B. | 520 |
| C. | 160 |
| D. | 360 |
| Answer» B. 520 | |
| 160. |
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 |
| Answer» B. roof broker | |
| 161. |
The type of preferred stock in which the dividend does not increase or decrease with the increase or decrease in profit of firm is classified as |
| A. | non-cumulative preferred stock |
| B. | cumulative preferred stock |
| C. | non-participating preferred stock |
| D. | participating preferred stock |
| Answer» D. participating preferred stock | |
| 162. |
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 |
| Answer» C. Gross proceeds | |
| 163. |
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 |
| Answer» D. over writer spread | |
| 164. |
The agreement between two parties to exchange cash flows in future and the cash flows are based on underlying instruments is classified as |
| A. | swaps |
| B. | interchange |
| C. | exchange |
| D. | index |
| Answer» B. interchange | |
| 165. |
The put option considering interest rates and have multiple exercise dates is classified as |
| A. | swaps multiplier |
| B. | notion multiplier |
| C. | floor |
| D. | cap |
| Answer» D. cap | |
| 166. |
The price of underlying asset is added into intrinsic value of option to calculate |
| A. | forward price of option |
| B. | exercise price of option |
| C. | book value of option |
| D. | spot price of option |
| Answer» C. book value of option | |
| 167. |
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 |
| Answer» B. secondary markets | |
| 168. |
The firm in which the different voting rights are assigned for different classes of stock is classified as |
| A. | divided class firm |
| B. | sub class firm |
| C. | dual class firm |
| D. | One class firm |
| Answer» D. One class firm | |
| 169. |
The indexes in which the price of stock of companies listed in stock market index are added together and is divided by an adjusted value are classified as |
| A. | herring indexes |
| B. | group indexes |
| C. | John indexes |
| D. | Dow Indexes |
| Answer» E. | |
| 170. |
The intrinsic value of put option is |
| A. | exercise price ⁄ stock price |
| B. | exercise price - stock price |
| C. | exercise price + stock price |
| D. | exercise price x stock price |
| Answer» C. exercise price + stock price | |
| 171. |
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 |
| Answer» D. extrinsic value | |
| 172. |
The type of swaps in which the fixed payments of interest are exchanged by two counterparties for floating payments of interest are called |
| A. | float-fixed swaps |
| B. | interest rate swaps |
| C. | indexed swaps |
| D. | counter party swaps |
| Answer» C. indexed swaps | |
| 173. |
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 |
| Answer» B. 1010 | |
| 174. |
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 |
| Answer» E. | |
| 175. |
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 |
| Answer» B. decrease in stock price | |