Try out our new practice tests completely free!

# Corporate Finance Study Set 12

## Quiz 23 :Options and Corporate Finance: Basic Concepts

Which of the following statements is true?
Free
Multiple Choice

C

Tags
Choose question tag
A stock has both a call and a put option outstanding. The exercise price was set equal to the stock price. If the option were to expire now what would be the minimum value of the call and the put respectively?
Free
Multiple Choice

D

Tags
Choose question tag
Which one of the following will cause the value of a call to decrease?
Free
Multiple Choice

D

Tags
Choose question tag
Which of the following statements is true?
Multiple Choice
Tags
Choose question tag
You can realize the same value as that derived from stock ownership if you:
Multiple Choice
Tags
Choose question tag
In general, an option gives the holder the right to exercise at the ______ price through the ______ date.
Multiple Choice
Tags
Choose question tag
Which of the following is not true concerning call option writers?
Multiple Choice
Tags
Choose question tag
A call gives the owner the right:
Multiple Choice
Tags
Choose question tag
Which one of the following statements correctly describes your situation as the owner of an American call option?
Multiple Choice
Tags
Choose question tag
An in-the-money put option is one that:
Multiple Choice
Tags
Choose question tag
Pay-off diagrams for a call options versus stock prices are called:
Multiple Choice
Tags
Choose question tag
You own a call option with time to expiration. The common stock is selling for $15 and your exercise price is$12, this option:
Multiple Choice
Tags
Choose question tag
The intrinsic value of a put is equal to the:
Multiple Choice
Tags
Choose question tag
An option that grants the right, but not the obligation, to sell shares of the underlying asset on a particular date at a specified price is called:
Multiple Choice
Tags
Choose question tag
Jeff opted to exercise his August option on August 10 and received \$2,500 in exchange for his shares. Jeff must have owned a (an):
Multiple Choice
Tags
Choose question tag
Which of the following statements is true?
Multiple Choice
Tags
Choose question tag
The lowest value a call option can have is:
Multiple Choice
Tags
Choose question tag
The special contractual nature giving the owner the right to buy or sell an asset at a fixed price on or before a given date is the basis of:
Multiple Choice