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Corporate Finance Study Set 12

Business

Quiz 23 :

Options and Corporate Finance: Basic Concepts

Quiz 23 :

Options and Corporate Finance: Basic Concepts

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Which of the following statements is true?
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C

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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?
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D

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Which one of the following will cause the value of a call to decrease?
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D

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Which of the following statements is true?
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You can realize the same value as that derived from stock ownership if you:
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In general, an option gives the holder the right to exercise at the ______ price through the ______ date.
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Which of the following is not true concerning call option writers?
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A call gives the owner the right:
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Which one of the following statements correctly describes your situation as the owner of an American call option?
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An in-the-money put option is one that:
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Pay-off diagrams for a call options versus stock prices are called:
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You own a call option with time to expiration. The common stock is selling for $15 and your exercise price is $12, this option:
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The intrinsic value of a put is equal to the:
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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:
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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):
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Which of the following statements is true?
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The lowest value a call option can have is:
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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:
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Which one of the following provides the option of selling a stock anytime during the option period at a specified price even if the market price of the stock declines to zero?
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A trading opportunity that offers a riskless profit is called a(n):
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