Hull_OFOD9e_MultipleChoice_Questions_Only_Ch26 - Hull...

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Hull: Options, Futures, and Other Derivatives, Ninth Edition Chapter 26: Exotic Options Multiple Choice Test Bank: Questions 1. An Asian option is a term used to describe which of the following A. An option where the payoff depends on whether a barrier is hit B. An option where the payoff depends on the average value of a variable over a period of time C. An option that trades on an exchange in the Far East D. Any option with a nonstandard payoff 2. As the barrier is observed more frequently, which of the following is true for a knock-out option? 3. There are two types of regular options (calls and puts). How many types of compound options are there? 4. There are two types of regular options (calls and puts). How many types of barrier options are there? 5. In a shout call option the strike price is $30. The holder shouts when the asset price is $40. What is the payoff from the option if the final asset price is $35? A. $0 B. $5 C. $10 D. $15 6. A floating lookback call option pays off which of the following
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