Binomial Approach MCQs & Quiz Online PDF Book Download

Binomial approach multiple choice questions (MCQs), binomial approach quiz answers to learn online BBA courses for finance classes. Financial options and applications in corporate finance MCQs, binomial approach quiz questions and answers for business administration degree online. Learn binomial approach test prep for financial business analyst certification.

Learn financial options and applications in corporate finance 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 business administration degree online. Practice merit scholarships assessment test, online learning binomial approach quiz questions for competitive in business majors .

MCQs on Binomial Approach PDF Book Download

MCQ: In binomial approach of option pricing model, 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 call option obligation is $100 then 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, 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 value of stock would be

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

C