Financial Management - Study Mode
[#751] Dividend Payout Ratio is:
Correct Answer
(B) DPS ÷ EPS
[#752] 5Cs of the credit does not include:
Correct Answer
(D) None of the above
[#753] Securitization is related to conversion of:
Correct Answer
(A) Receivables
[#754] According to Black Scholes model, short term seller receives today price which
Correct Answer
(C) full cash proceeds
Explanation
Solution: According to Black Scholes model, short term seller receives today price which full cash proceeds. Proceeds are the cash received from the sale of goods or services and can be discussed as gross or net.
[#755] An investor who writes stock call options in his own portfolio is classified as
Correct Answer
(B) covered option
Explanation
Solution: An investor who writes stock call options in his own portfolio is classified as covered option. A covered call option occurs when the investor owns the underlying asset and writes a call so that the underlying is on hand to sell to the option holder if the option is exercised. A covered put option occurs when the investor writes a put and has enough cash to cover the strike if the put is exercised.