A. Shorter call option
B. Longer call option
C. Longer put option
D. Shorter put option
Related Mcqs:
- An increase in value of option leads to low present value of exercise cost only if it has____________?
A. Low volatility
B. Interest rates are high
C. Interest rates are low
D. High volatility - If book value is greater than market value comparison with investors for future stock are considered as_______________?
A. Pessimistic
B. Optimistic
C. Experienced
D. Inexperienced - If market value is greater than book value, then investors for future stock are considered as___________________?
A. Experienced
B. Inexperienced
C. Pessimistic
D. Optimistic - Current option price is added to present value of portfolio for calculating_________?
A. Future value of portfolio
B. Current value of stock
C. Future value of stock
D. Present value of portfolio - The rate of return on non-callable bonds is added into value of issuer option to calculate
A. return on assets
B. return on callable bond
C. return on non-callable bonds
D. return on equity - The value of conversion option to bond holder is $550 and the rate of return on non-convertible bond is $270 then rate of return on convertible bond is _________?
A. 0.0204
B. 2.04
C. 280
D. 820 - The value of conversion option to bond holder is $220 and the rate of return on non-convertible bond is $350 then rate of return on convertible bond is _____________?
A. 570
B. 130
C. 670
D. 1.59 - The value of option issued to call debt is $780 and return rate on callable bond is $370 then return rate on non-callable bond is ___________?
A. 1250
B. 1150
C. 1350
D. 410 - The value of conversion option to bond holder is $740 and the rate of return on non-convertible bond is $540 then rate of return on convertible bond is ____________?
A. 0.0137
B. 1280
C. 1.37
D. 200 - The rate of return on non-callable bonds is $370 and value of issuer option is $250 then the return on callable bond is _____________?
A. 120
B. 0.0148
C. 620
D. 1.48
