The pre-specified price at which the underlying asset is bought and sold is called as ___________?

Related Mcqs:

1. 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

2. The intrinsic value of an option is $490 and the price of underlying asset is $290 then the exercise price of an option is ___________?

   A. 290
   B. 780
   C. 490
   D. 200

3. The difference between price of underlying asset and exercise price of option is classified as __________?

   A. extrinsic value of European option
   B. intrinsic value of option
   C. extrinsic value of option
   D. intrinsic value of European option

4. 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

5. When the price of underlying asset increases then the good option is __________?

   A. buy the call option
   B. sell the call option
   C. buy the put option
   D. sell the put option

6. 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

7. The orders that are transacted at specified price are considered as ___________?

   A. red herring order
   B. limit order
   C. unlimited order
   D. assets order

8. The type of option that gives the right to buyer to sell the underlying option at specific exercise price is considered as _____________?

   A. call option
   B. put option
   C. European option
   D. Australian option

9. 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

10. The method of auction of future contract in which the traders sell their future contracts at a specified price, by crying out in louder voices is classified as _____________?

    A. traders gathered auction
    B. close outcry auction
    C. specified auction
    D. open outcry auction