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
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
Long-term equity anticipation security is usually classified as__________?
A: Short-term options
B: Long-term options
C: Short money options
D: Yearly call
Low price for earnings ratio is result of________________?
A: Low riskier firms
B: High riskier firms
C: Low dividends paid
D: High marginal rate
Low riskier firms
An investor who writes stock call options in his own portfolio is classified as__________?
A: Due option
B: Covered option
C: Undue option
D: Uncovered option
A regulatory body which licenses brokers and oversees traders is classified as__________?
A: International firm of auction system
B: International association of network dealers
C: National firm of equity dealers
D: National association of securities dealers
National association of securities dealers
Corporations such as Citigroup, American Express and Fidelity are classified as__________________?
A: Financial services corporations
B: Common service corporations
C: Preferred service corporations
D: Commercial service corporations
Financial services corporations
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
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
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