A. liquidity will be higher
B. loss will be higher
C. profit will be lower
D. profit will be higher
Related Mcqs:
- The type of option that can be exercised before the date of expiration as well as on expiry date is classified as _____________?
A. Australian option
B. American option
C. European option
D. Canadian option - Consider buying the call option, if the price of stock rises then the buyer of call option has __________?
A. low potential of losses
B. high potential of losses
C. high potential of profit
D. low potential of profit - Consider buying the call option, if the price of stock falls then the buyer of call option has ___________?
A. high potential of profit
B. low potential of profit
C. low potential of losses
D. high potential of losses - The type of option that can be exercised only at the date of expiration is classified as ____________?
A. European option
B. Canadian option
C. Australian option
D. American option - If the stock price of call option is $300 and the exercise price of call option is $260 then the intrinsic value of option is ___________?
A. 260
B. 560
C. 40
D. 300 - If the time value of an option is $200 and the intrinsic value of an option is $250 then the price of option is _________?
A. 50
B. 550
C. 200
D. 250 - 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 - The intrinsic value of option is $280 and the price of option is $350 then the time value of option is ___________?
A. 125
B. 135
C. 280
D. 70 - 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 - 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
