In financial planning, most high option price will lead to__________?

A: Longer option period

B: Smaller option period

C: Lesser price

D: Higher price

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Longer option period

An increase in value of option leads to low present value of exercise cost only if it has____________?

A: Low volatility

B: Interest rates are high

C: Interest rates are low

D: High volatility

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Interest rates are high

An option that gives investors right to sell a stock at predefined price is classified as____________?

A: Put option

B: Call option

C: Money back options

D: Out of money options

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Put option

Long-term equity anticipation security is usually classified as__________?

A: Short-term options

B: Long-term options

C: Short money options

D: Yearly call

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Long-term options

Low price for earnings ratio is result of________________?

A: Low riskier firms

B: High riskier firms

C: Low dividends paid

D: High marginal rate

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Low riskier firms

Companies take savings as premium, invest in bonds and make payments to beneficiaries are classified as_____________?

A: Debit unions

B: Life insurance companies

C: Credit unions

D: Auto purchases

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Life insurance companies

Financial corporations which serve individual savers and commercial mortgage borrowers are classified as____________?

A: Savings associations

B: Loans associations

C: Preferred and common associations

D: Savings and loans associations

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Savings and loans associations

Movement of price or rise or fall of prices of options is classified as_________?

A: Option lattice

B: Pricing movement

C: Price change

D: Binomial lattice

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Binomial lattice

According to Black Scholes model, selling and buying of stock have_______?

A: Discount rate

B: Transaction costs

C: No transaction costs

D: No discounts

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Transaction costs

If current price increases from lower to higher then an____________?

A: Option value equal to one

B: Option value will increase

C: Option value will decrease

D: Option value equal to zero

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Option value will increase

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