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Financial Options and Applications in Corporate Finance
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Financial Options and Applications in Corporate Finance
The present value of portfolio is $1300 and the current value of stock in portfolio is $2300 then the current option price will be
3600
1000
0.0176
1.76 times
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
The movement of price or the rise or fall of prices of options is classified as
option lattice
pricing movement
price change
binomial lattice
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
According to put call parity relationship, the call option plus present value of exercise price minus stock is to calculate
present value of option
call option
put option
future value of option
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
The situation in financial options in which the strike price is less than current price of stock is classified as
in-the-money
out-of-the-money
out-of-the-portfolio
in-the-portfolio
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
The types of option markets do not include
European option
American option
expiry option
covered options
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
The current option is $700 and the current value of stock in portfolio is $1400 then the present value of portfolio will be
−$700
2100
700
0.02
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
The current option is $800 and the current value of stock in portfolio is $1900 then the present value of portfolio would be
−$1100
2700
1100
−$2700
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
The greater value of the option, the larger span of time value is usually results in
shorter call option
longer call option
longer put option
shorter put option
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
In binomial approach of option pricing model, the last step for finding an option is
price hike
price value
put price
call price
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
The current option price is added to present value of portfolio for calculating
future value of portfolio
current value of stock
future value of stock
present value of portfolio
Author:
rikazzz
Comment
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