• Finance Quiz – 13

    121 For Put option moneyness, S>X (S= Current Stock Price, X = Exercise price) is termed as?
      A) In-the-Money
      B) Out-Of-the-Money
      C) At-the-Money
      D) None of These
       
    122 Regarding Yield Curve, Which theory explains yield curve based on short term rate expectations?
      A) Pure Expectation Theory
      B) Liquidity Preference Theory
      C) Market Segmentation Theory
      D) Credit rating theory
       
    123 Regarding Yield Curve, Which theory adds liquidity premium to get the Yield Curve?
      A) Pure Expectation Theory
      B) Liquidity Preference Theory
      C) Market Segmentation Theory
      D) Credit rating theory
       
    124 Regarding Yield Curve, Which theory explains yield curve based on demand and supply of bonds with one specific duration?
      A) Pure Expectation Theory
      B) Liquidity Preference Theory
      C) Market Segmentation Theory
      D) Credit rating theory
       
    125 As per Pure Expectation Theory, expected fall in short term rates leads to?
      A) Upward Sloping Yield Curve
      B) Downward Sloping Yield Curve
      C) Humped Yield Curve
      D) Flat Yield Curve
       
    126 If Current Yield = Yield to maturity, bond will be selling at?
      A) Its par value
      B) Discount
      C) Premium
      D) Can’t say
       
    127 If Current Yield < Yield to maturity, bond will be selling at?
      A) Its par value
      B) Discount
      C) Premium
      D) Can’t say
       
    128 If Current Yield > Yield to maturity, bond will be selling at?
      A) Its par value
      B) Discount
      C) Premium
      D) Can’t say
       
    129 Which of these derivative instrument has the highest default risk?
      A) Forward
      B) Futures
      C) Call Option
      D) Put Option
       
    130 For Put option moneyness, S=X (S= Current Stock Price, X = Exercise price) is termed as?
      A) In-the-Money
      B) Out-Of-the-Money
      C) At-the-Money
      D) None of These

     

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