Detailed SolutionGreater value of option, larger span of time value is usually results in
Financial management
shorter call option
longer call option
longer put option
shorter put option
Answer is Right!
Answer is Wrong!
12. If the dispersion around a security’s return is larger ____________.
the expected return is smaller
the standard deviation is smaller
the stock's price is higher
the security's risk is higher
Answer is Right!
Answer is Wrong!
Detailed SolutionIf the dispersion around a security’s return is larger ____________.
13. Required rate of return in calculating bond’s cash flow is also classified as
going rate of return
yield
earning rate
Both A and B
Answer is Right!
Answer is Wrong!
Detailed SolutionRequired rate of return in calculating bond’s cash flow is also classified as
14. In large expansion programs, increased riskiness and floatation cost associated with project can cause
rise in marginal cost of capital
fall in marginal cost of capital
rise in transaction cost of capital
rise in transaction cost of capital
Answer is Right!
Answer is Wrong!
15. Low price for earning ratio is result of
low risky firms
high risky firms
low dividends paid
high marginal rate
Answer is Right!
Answer is Wrong!
16. Real interest rate and real cash flows do not include
equity effects
debt effects
inflation effects
opportunity effects
Answer is Right!
Answer is Wrong!
Detailed SolutionReal interest rate and real cash flows do not include
17. At last day when European and American option can be exercised is classified as
European date
American date
expiration date
money date
Answer is Right!
Answer is Wrong!
Detailed SolutionAt last day when European and American option can be exercised is classified as
18. A method of inventory recording which produces high inventories in balance sheet is classified as
First out receivable
First in first out
Last in first out
last out receivable
Answer is Right!
Answer is Wrong!
19. According to put call parity relationship, a call option minus put option in addition with present value of exercise is equal to
binomial property
constant property
constant and variable property
stock
Answer is Right!
Answer is Wrong!
20. Cash flow which is available for all investors of company is classified as
extrinsic stock
intrinsic stock
investing cash
free cash flow
Answer is Right!
Answer is Wrong!
Detailed SolutionCash flow which is available for all investors of company is classified as