Investment Test

1. Purchasers of com reposeer storage resources A) own a financial addition with benefits of regular ownership. B) have a claim on the shekels of the firm issuing the underlying securities. C) have the obligation to deal or cover a predetermined amount of sh ares at the scrub price. D) have the right to buy or transmit a certain number of underlying shares. 2. Which of the succeeding(a) statements concerning options are reform? I.Options are derivative securities. II.The range of an option is parasitical upon the value of the underlying shelter. three.The seller of the option retains the option indemnity whether or non the option is exercised. IV.Options can provide extension benefits. A) II and III moreover B) I, II and III only C) I, II and IV only D) I, II, III and IV 3. Which of the following is true about rights? A) They are usually attach to bonds as a sweetener B) The owner has several days in which to exercise the option. C) They are a type of perfunctory call option option. D) They are a type of short-lived mold option. 4. The cogency to obtain a given equity state of personal business at a reduced capital investment, and therefore expand returns, is known as A) leverage. B) straddling. C) hedging. D) triple witching. 5. The writer of a put A) accepts the obligation to sell a predetermined number of shares at a predetermined price.

B) is betting the price of the underlying security depart ontogeny in value. C) is hoping that the put will be in-the-money prior to deviation. D) will pay the premium whether or not the option is exercised. 6. T he both provisions which investors should c! arefully consider when evaluating stock up options are the A) blast price and the exchange ratio. B) time until expiration and the strike price. C) leverage ratio and the time to maturity. D) premium and the discount. 7. A put option has a strike price of $32. The rate of flow price of the stock is $34. The put option is said to be in-the-money. TRUE/FALSE 8. The or so important factor...If you emergency to get a full essay, say it on our website: BestEssayCheap.com

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