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

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

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

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

Covered 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

Binomial lattice

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