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

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

Step in initial public offering in which hired agents act on behalf of owners is classified as______________?

A: Hiring problems

B: Agency problems

C: Corporation internal problems

D: Corporation external problems

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Agency problems

Mutual fund allows investors to sale out their share during any normal trading hours is classified as____________?

A: Exchange traded fund

B: Management expense

C: Money trade fund

D: Capital trade fund

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Exchange traded fund

Rate of return which is asked by investors is classified as_____________________?

A: Average cost of capital

B: Mean cost of capital

C: Weighted cost of capital

D: Weighted average cost of capital

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Weighted average cost of capital

In financial markets, period of maturity more than five years of financial instruments is classified as___________________?

A: Intermediate term

B: Capital term

C: Short-term

D: Long-term

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Long-term

Type of financial securities that mature in less than a year are classified as___________?

A: Saving intermediaries

B: Discounted intermediaries

C: Money market securities

D: Capital market securities

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Capital market securities

Type of financial security in which loans are secured by borrowers property is classified as__________?

A: Municipal bonds

B: Corporate bonds

C: U.S treasury bonds

D: Mortgages

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Mortgages

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