Black Scholes Option Pricing Model MCQ (Multiple Choice Questions) PDF - 74

MCQ 366: In the options pricing, an exercise price rises from lower to higher which leads to

1. volatile options
2. option value increases
3. option value decreases
4. option value stable

MCQ 367: According to capital asset pricing model assumptions, the quantities of all the assets are

1. given and fixed
2. not given and fixed
3. not given and variable
4. given and variable

MCQ 368: A retirement plans funded for workers by corporations, administered and commercial banks are classified as

1. retirement funds
2. pension funds
3. future funds
4. workers funds

MCQ 369: In the stock option, a little chance exists for large gain on stock when the price of stock

1. have volatile movement
2. moves freely
3. rarely moves
4. stays same

MCQ 370: According to the Black Scholes model, the rate which is constant and known is classified as

1. short term return rate
2. long term return rate
3. risk free interest rate
4. risky rate of return