Learn Binomial Approach MCQs, binomial approach quiz answers pdf to study online finance degree course. Practice Financial Options and Applications in corporate Finance Multiple Choice Questions & Answers (MCQs), "Binomial Approach" quiz questions and answers for online bachelor's degree in business management. Learn financial options & applications in corporate finance test prep to learn online certificate courses.

Practice binomial approach MCQ: In binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate, with choices current value of portfolio, future value of portfolio, put option value, and call option value for online bachelor's degree in business management. Practice merit scholarships assessment test, online learning Binomial Approach Quiz Questions for competitive in business majors for online business degree.

MCQ: In binomial approach of option pricing model, the value of stock is subtracted from call option obligation value to calculate

1. current value of portfolio
2. future value of portfolio
3. put option value
4. call option value

A

MCQ: Current value of stock in portfolio with current option price \$20 is \$50, then present value of portfolio would be

1. 30
2. 70
3. 0.0167
4. 0.3

A

MCQ: Value of stock is \$250 and the call option obligation is \$100 then the current value of portfolio would be

1. 0.35 times
2. 150
3. 350
4. 2.5

B

MCQ: In binomial approach of option pricing model, the fourth step is to create

1. equalize the domain of payoff
2. equalize the ending price
3. riskless investment
4. high risky investment

C

MCQ: Current value of portfolio is \$550 and to cover an obligation of call option is \$200 then the value of stock would be

1. 350
2. 0.0275
3. 750
4. 2.75 times

C