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Financial Options and Applications in Corporate Finance
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Financial Options and Applications in Corporate Finance
The yield on Treasury bill with a maturity is classified as a risk free rate but must be equal to an
option closing price
option beginning price
option expiration
option model
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
According to the Black Scholes model, the stocks with the call option pays the
dividends
no dividends
current price
past price
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
The present value of portfolio is $900 and the current value of stock in portfolio is $1500 then the current option price would be
2400
−$600
−$2400
600
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
An option that gives investors the right to sell a stock at predefined price is classified as
put option
call option
money back options
out of money options
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
The current value of portfolio is $550 and to cover an obligation of call option is $200 then the value of stock would be
350
0.0275
750
2.75 times
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
In an option pricing, a rises in risk free rate results in option’s value
slight time decreases
slight increases
slight decreases
slight time increases
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
According to the Black Scholes model, the selling and buying of the stock have
discount rate
transaction costs
no transaction costs
no discounts
Author:
rikazzz
Comment
Financial Options and Applications in Corporate Finance
According to the Black Scholes model, the short term seller receives today’s price which
short term cash proceeds
proceeds in cheques
full cash proceeds
zero proceeds
Author:
rikazzz
Comment
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