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

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

Greater value of option, larger span of time value is usually results in__________?

A: Shorter call option

B: Longer call option

C: Longer put option

D: Shorter put option

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Longer call option

An investor who buys shares and writes a call option on stock is classified as__________?

A: Put investor

B: Call investor

C: Hedger

D: Volatile hedge

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Hedger

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

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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

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Financial services corporations

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