Binomial Approach MCQs Quiz Online PDF Download

Learn binomial approach MCQs, financial management test for online courses learning and test prep to practice. Financial options and applications in corporate finance quiz has multiple choice questions (MCQ), binomial approach quiz questions and answers to learn for distance learning BBA exam preparation.

Financial management practice test MCQ on in binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate with options current value of portfolio , future value of portfolio, put option value and call option value problem solving skills for viva, competitive exam prep, interview questions with answer key. Free study guide is for online learning binomial approach quiz with MCQs to practice test questions with answers.

MCQs on Binomial Approach Quiz PDF 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. 1.67%
  4. 30%

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. $2.50

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. 2.75%
  3. $750
  4. 2.75 times

C