International Finance And Treasury - Study Mode

[#286] If exercise price of an option is $360 and intrinsic value of an option is $160 then price of an underlying asset is
Correct Answer

(A) $200

Explanation

Solution: Price of an underlying asset = Exercise price of an option - Intrinsic value of an option = $360 - $160 = $200.

[#287] Time period between issuance of shares and filing of registration to Securities Exchange Commission is classified as
Correct Answer

(B) quiet period

Explanation

Solution: Time period between issuance of shares and filing of registration to Securities Exchange Commission is classified as quiet period. The time period principle is the concept that a business should report the financial results of its activities over a standard time period, which is usually monthly, quarterly, or annually.

[#288] Composite value of traded stocks group of secondary markets is classified as
Correct Answer

(C) stock market index

Explanation

Solution: Composite value of traded stocks group of secondary markets is classified as stock market index. A stock index or stock market index is a measurement of a section of the stock market.

[#289] Type of option that gives right to buyer to buy underlying option at specific exercise price is considered as
Correct Answer

(C) call option

Explanation

Solution: Type of option that gives right to buyer to buy underlying option at specific exercise price is considered as call option. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.

[#290] Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as
Correct Answer

(C) non-participating preferred stock

Explanation

Solution: Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as non-participating preferred stock. Non-participating preferred stock is preferred stock that specifically limits the amount of dividends paid to its holders.