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 ___________?

Related Mcqs:

1. The right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stock holders is classified as ____________?

   A. non-offered rights
   B. preemptive rights
   C. existing rights
   D. securitize rights

2. 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

3. 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

4. The feature of stock which allows stock holders to buy the shares below than market price is called __________?

   A. shares offering
   B. price offering
   C. rights offering
   D. stock offering

5. The type of exchange members who only buy and sell for their personal account are classified as __________?

   A. non-investment traders
   B. professional traders
   C. commercial traders
   D. investment traders

6. 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

7. The voting ballot that is sent to stock holders by the corporation is classified as ___________

   A. corporate paper
   B. white voting paper
   C. screened paper
   D. proxy

8. The type of preferred stock whose dividend payments are never paid to stock holders and are not considered in arrears is classified as ____________?

   A. non-participating preferred stock
   B. participating preferred stock
   C. non-cumulative preferred stock
   D. cumulative preferred stock

9. The sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to ___________?

   A. return to common stockholders
   B. return on premium bonds
   C. return to stock holder
   D. return to preferred stock

10. 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