World Stock Markets Online Exam Quiz

Important questions about World Stock Markets. World Stock Markets MCQ questions with answers. World Stock Markets exam questions and answers for students and interviews.

The markets in which the derivatives are traded, are classified as

Options

A : a. assets backed market

B : b. cash flow backed markets

C : c. mortgage backed markets

D : d. derivative securities markets

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

Options

A : a. increase in stock price

B : b. decrease in stock price

C : c. increase in maturity duration

D : d. decrease in maturity duration

The price of an option is subtracted form time value of option to calculate

Options

A : a. book value index

B : b. market index

C : c. intrinsic value

D : d. extrinsic value

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

Options

A : a. 110

B : b. 1010

C : c. 450

D : d. 560

The type of swaps in which the fixed payments of interest are exchanged by two counterparties for floating payments of interest are called

Options

A : a. float-fixed swaps

B : b. interest rate swaps

C : c. indexed swaps

D : d. counter party swaps

The preferred stock is considered as hybrid security because it includes

Options

A : a. representation of ownership interest

B : b. fixed periodic payment

C : c. higher liquidity

D : d. both a and b

The situation in which the large portion of majority is borrowed from the broker of investor is classified as

Options

A : a. future investment

B : b. forward investment

C : c. leveraged investment

D : d. non-leveraged investment

A swap that is used to evade the risk of exchange rate exists because of currency mismatching is classified as

Options

A : a. floating swaps

B : b. fixed swaps

C : c. currency swaps

D : d. notion swaps

In interest rate swap transaction, the party who pays the floating payments of interest is considered as

Options

A : a. notion buyer

B : b. notion seller

C : c. swap buyer

D : d. swap seller

The type of contract which involves the future exchange of assets at a specified price is classified as

Options

A : a. future contracts

B : b. present contract

C : c. spot contract

D : d. forward contract

When the price of underlying asset increases then the good option is

Options

A : a. buy the call option

B : b. sell the call option

C : c. buy the put option

D : d. sell the put option

The capital gain is subtracted from return to stockholders to calculate

Options

A : a. periodic dividend payments

B : b. constant spot rate payment

C : c. constant forward rate payment

D : d. constant future rate payment

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

Options

A : a. increase in stock price

B : b. decrease in stock price

C : c. increase in maturity duration

D : d. decrease in maturity duration

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

Options

A : a. non-offered rights

B : b. preemptive rights

C : c. existing rights

D : d. securitize rights

The price at which the stock is sold to investors by the investment banks is called

Options

A : a. Gross proceeds

B : b. cumulative proceeds

C : c. non-cumulative proceeds

D : d. net proceeds

The underwriter spread of stock is $17000 and the net proceeds of stock are $24000 then the gross proceeds are

Options

A : a. 41000

B : b. 7000

C : c. 17000

D : d. 24000

If the time value of an option is $200 and the intrinsic value of an option is $250 then the price of option is

Options

A : a. 50

B : b. 550

C : c. 200

D : d. 250

The type of unit which guarantees that all the buying and selling will be made by traders of exchange is called

Options

A : a. trading house

B : b. guarantee house

C : c. clearing house

D : d. professional house

The amount of money involved in swap transaction is classified as

Options

A : a. notion principal

B : b. swap principal

C : c. transaction principal

D : d. time value of swap

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

Options

A : a. call premium

B : b. discount premium

C : c. strike premium

D : d. exercise premium

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