International Finance And Treasury - Study Mode

[#506] Type of trade members who take position for short period of time or sometimes for only few minutes are classified as
Correct Answer

(A) scalpers

Explanation

Solution: Type of trade members who take position for short period of time or sometimes for only few minutes are classified as scalpers. A scalper, in the context of market supply-demand theory, also refers to a person who buys large quantities of in-demand items, such as new electronics or event tickets, at regular price, hoping that the items sell out. The scalper then resells the items at a higher price.

[#507] Black Scholes model consider factors which affects an option price and factors are
Correct Answer

(D) all of above

Explanation

Solution: Black Scholes model consider factors which affects an option price and factors are spot price of asset, exercise price and exercise date of option and price volatility. Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option based on six variables such as volatility, type of option, underlying stock price, time, strike price, and risk-free rate.

[#508] Total count of all contracts and options such as call, put and futures outstanding at start of working day is classified as
Correct Answer

(D) open interest

Explanation

Solution: Total count of all contracts and options such as call, put and futures outstanding at start of working day is classified as open interest. Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled for an asset. The total open interest does not count, and total every buy and sell contract.

[#509] Periodic payments of dividends are subtracted from return to stockholders to calculate
Correct Answer

(C) gain on capital

Explanation

Solution: Periodic payments of dividends are subtracted from return to stockholders to calculate gain on capital. Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price.

[#510] Voting ballot that is sent to stock holders by corporation is classified as
Correct Answer

(D) proxy

Explanation

Solution: Voting ballot that is sent to stock holders by corporation is classified as proxy. A proxy is an agent legally authorized to act on behalf of another party or a format that allows an investor to vote without being physically present at the meeting.