The up-front fee which must be paid by the buyer to the seller is called ___________?

Related Mcqs:

1. The type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as ___________?

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

2. Consider the call option writing, the probability that a buyer would have positive payoff increases with the ___________?

   A. increase in stock price
   B. decrease in stock price
   C. increase in maturity duration
   D. decrease in maturity duration

3. Consider the buying of put option, the probability that a buyer would have negative payoff increases with the ___________?

   A. increase in stock price
   B. decrease in stock price
   C. increase in maturity duration
   D. decrease in maturity duration

4. 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

5. 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

6. 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

7. 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

8. 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

9. The type of preferred stock whose paid dividends are more than the promised dividends is classified as ____________?

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

10. The buying price of stock is $35 and it can be sold for $30 whereas the dividend paid is $6 then return on stock is ____________?

    A. 0.3667
    B. 0.4667
    C. 0.2667
    D. 0.2667