World Stock Markets(Financial Management And Financial Markets ) Questions and Answers

Question 1. The type of exchange members who only buy and sell for their personal account are classified as
  1.    non-investment traders
  2.    professional traders
  3.    commercial traders
  4.    investment traders
Explanation:-
Answer: Option B. -> professional traders
Answer: (b).professional traders
Question 2. The intrinsic value of option is $280 and the price of option is $350 then the time value of option is
  1.    125
  2.    135
  3.    280
  4.    70
Explanation:-
Answer: Option D. -> 70
Answer: (d).70
Question 3. The pre-specified price at which the underlying asset is bought and sold is called as
  1.    maturity price
  2.    strike price
  3.    exercise price
  4.    both b and c
Explanation:-
Answer: Option D. -> both b and c
Answer: (d).both b and c
Question 4. In interest rate swap transaction, the party who pays the fixed payments of interest is classified as
  1.    notion buyer
  2.    notion seller
  3.    swap buyer
  4.    swap seller
Explanation:-
Answer: Option C. -> swap buyer
Answer: (c).swap buyer
Question 5. The margin which must be maintained as soon as futures contract takes place is classified as
  1.    spot margin
  2.    maintenance margin
  3.    futures margin
  4.    forwards margin
Explanation:-
Answer: Option B. -> maintenance margin
Answer: (b).maintenance margin
Question 6. Consider buying the call option, if the price of stock falls then the buyer of call option has
  1.    high potential of profit
  2.    low potential of profit
  3.    low potential of losses
  4.    high potential of losses
Explanation:-
Answer: Option D. -> high potential of losses
Answer: (d).high potential of losses
Question 7. The position which occurs because of selling floor and buying cap is classified as
  1.    floating collar
  2.    fixed collar
  3.    currency collar
  4.    collar
Explanation:-
Answer: Option D. -> collar
Answer: (d).collar
Question 8. The stock holder who does not have any voting rights in the corporation is considered as
  1.    sub class voter
  2.    preferred stockholder
  3.    common stock holder
  4.    cumulative voter
Explanation:-
Answer: Option B. -> preferred stockholder
Answer: (b).preferred stockholder
Question 9. The under writer spread is $47500 and the gross proceeds are $34000 then net proceeds are
  1.    13500
  2.    81500
  3.    47500
  4.    34000
Explanation:-
Answer: Option A. -> 13500
Answer: (a).13500
Question 10. The type of voting in which all the directors in voting lists are voted at same time is classified as
  1.    cumulative voting
  2.    non-cumulative voting
  3.    dual class voting
  4.    limited voting
Explanation:-
Answer: Option A. -> cumulative voting
Answer: (a).cumulative voting
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