Binomial Approach MCQs Quiz Online PDF Download

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Study bachelors and masters in finance degree MCQs: in binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate, for online course choices current value of portfolio , future value of portfolio, put option value , and call option value for online business manager interview questions and answers with BBA, MBA competitive exam tests. Free skills assessment test is for online learn binomial approach quiz questions with MCQs, exam preparation questions and answers for business school exam prep for bachelor degree students.

MCQs on Binomial ApproachQuiz 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