• Finance Quiz – 14

    131 For which derivative instrument, buyer needs to pay premium to the seller to enter into a contract?
      A) Forwards
      B) Futures
      C) Options
      D) Interest Rate Swaps
       
    132 For Future trading, which amount must be deopisted before any trading?
      A) Valuation Margin
      B) Initial Margin
      C) Variation Margin
      D) Maintenance Margin
       
    133 For Future trading, the minimum margin which is maintained is called as?
      A) Valuation Margin
      B) Initial Margin
      C) Variation Margin
      D) Maintenance Margin
       
    134 Which of these is a Long position?
      A) Sell Call
      B) Sell Put
      C) Buy Put
      D) None of These
       
    135 Which of these is a Short position?
      A) Sell Call
      B) Sell Put
      C) Buy Call
      D) None of These
       
    136 Which type of option can be exercised at any time upto the espiration date?
      A) American Option
      B) European Option
      C) Both
      D) None of These
       
    137 Which type of option can only be exercised on the espiration date?
      A) American Option
      B) European Option
      C) Both
      D) None of These
       
    138 For Call 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
       
    139 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
       
    140 Decrease in Risk Free Rate leads to
      A) Increase in Put Price
      B) Decrease in Put Price
      C) Increase in Call Price
      D) No Change

     

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