Financial management

21. Present value of portfolio is Rs 1300 and current value of stock in portfolio is Rs 2300 then current option price will be

Rs 3,600.00
Rs 1,000.00
Rs 1,250.00
Rs 1,500.00

Detailed SolutionPresent value of portfolio is Rs 1300 and current value of stock in portfolio is Rs 2300 then current option price will be

22. Bonds that have high liquidity premium are usually have

inflated trading
default free trading
less frequently traded
frequently traded

Detailed SolutionBonds that have high liquidity premium are usually have

23. An exercise of option in future and part of option call value depends specifically on

PV of exercising cost
FV of exercising cost
PV of cost volatility
FV of cost volatility

Detailed SolutionAn exercise of option in future and part of option call value depends specifically on

24. The time required to process and execute an order is called

allowed time
lead time
accepted time
fixed time

Detailed SolutionThe time required to process and execute an order is called

25. In expected rate of return for constant growth, capital gains is divided by capital gains yield to calculate

returning price
ending price
beginning price
regular price

Detailed SolutionIn expected rate of return for constant growth, capital gains is divided by capital gains yield to calculate

26. Companies that help to set benchmarks are classified as

competitive companies
benchmark companies
analytical companies
return companies

Detailed SolutionCompanies that help to set benchmarks are classified as

27. Net income available to stockholders is Rs 125 and total assets are Rs 1,096 then return on common equity would be

0.11%
11.40%
0.12 times
12.00%

Detailed SolutionNet income available to stockholders is Rs 125 and total assets are Rs 1,096 then return on common equity would be

28. An investor who buys shares and writes a call option on stock is classified as

put investor
call investor
hedger
volatile hedge

Detailed SolutionAn investor who buys shares and writes a call option on stock is classified as

29. The value of bond depends on ____________.

the coupon rate
years to maturity
expected yield to maturity
all the above

Detailed SolutionThe value of bond depends on ____________.

30. Operating incomes and the discount rate of a particular risk class are the 2 factors determining ____________.

Dependence hypothesis
Traditional view
Modern view
Independence hypothesis

Detailed SolutionOperating incomes and the discount rate of a particular risk class are the 2 factors determining ____________.

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