International Finance And Treasury - Study Mode

[#681] Euro is the official currency of
Correct Answer

(B) All the states of European Union

Explanation

Solution: Euro is the official currency of all the states of European Union. The eurozone consists of 19 members who are EU members and use the euro. They are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

[#682] Intrinsic value of option is $280 and price of option is $350 then time value of option is
Correct Answer

(D) $70

Explanation

Solution: Time value of option = Price of option - Intrinsic value of option = $350 - $280 = $70.

[#683] Margin which must be maintained as soon as futures contract takes place is classified as
Correct Answer

(B) maintenance margin

Explanation

Solution: Margin which must be maintained as soon as futures contract takes place is classified as maintenance margin. A maintenance margin is the minimum amount of equity that must be maintained in a margin account.

[#684] Types of corporate stock that are traded in exchange markets are
Correct Answer

(D) both a and b

Explanation

Solution: Types of corporate stock that are traded in exchange markets are common stock and preferred stock.

[#685] Process in which group of investment banks distribute securities is classified as
Correct Answer

(B) syndicate

Explanation

Solution: Process in which group of investment banks distribute securities is classified as syndicate. This is a way of distributing a newly issued security, such as stocks or bonds, to investors.