Ch24 - COURSES > FUNDAMENTALS OF CORPORATE FINANCE:,...

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Add, modify, and remove questions. Select a question type from the Add Question drop-down list and click Go to add questions. Use Creation Settings to establish which default options, such as feedback and images, are available for question creation. COURSES > FUNDAMENTALS OF CORPORATE FINANCE:, 9/E - ROSS > CONTROL PANEL > POOL MANAGER > POOL CANVAS Pool Canvas Add Multiple Choice Creation Settings Name Chapter 24 Options and Corporate Finance Description Questions which Blackboard's assessment component is incapable of supporting are not included in the export. Instructions Add Question Here Question 1 Multiple Choice Question Which one of the following grants its owner the right to buy or to sell an asset at a prespecified price at any time during a stated period? Answer option forward contract futures contract swap intrinsic contract Correct Feedback Refer to section 24.1 Incorrect Feedback Refer to section 24.1 Add Question Here Question 2 Multiple Choice Question Elizabeth owns a call option on 100 shares of Microsoft stock. She has decided to buy those shares. This purchase is commonly referred to as: Answer striking the asset. expiring the option. exercising the option. putting the collar. the collar option. Correct Feedback Refer to section 24.1 Incorrect Feedback Refer to section 24.1 Add Question Here Question 3 Multiple Choice Question Marti owns an option that allows him to purchase ABC stock at $50 a share. The $50 price is referred to as the: Answer opening price. intrinsic value. strike price. market price. time value. Correct Feedback Refer to section 24.1 Incorrect Feedback Refer to section 24.1 Add Question Here Question 4 Multiple Choice Question What is the final day on which an option can be exercised called? Answer payment date ex-option date opening date
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expiration date intrinsic date Correct Feedback Refer to section 24.1 Incorrect Feedback Refer to section 24.1 Add Question Here Question 5 Multiple Choice Question Felicia purchased an option which she can exercise anytime within the next six months. Which type of option did she purchase? Answer market-ready portable daily European American Correct Feedback Refer to section 24.1 Incorrect Feedback Refer to section 24.1 Add Question Here Question 6 Multiple Choice Question Brad purchased an option that he can only exercise on the final day of the option period. Which type of option did he purchase? Answer European American inflexible dated pointed Correct Feedback Refer to section 24.1 Incorrect Feedback Refer to section 24.1 Add Question Here Question 7 Multiple Choice Question Which of the following grants its owner the right to purchase an asset at a stated price? I. American call II. European call III. American put IV. European put Answer I only I and II only I and III only II and IV only III and IV only Correct Feedback Refer to section 24.1 Incorrect Feedback Refer to section 24.1 Add Question Here Question 8 Multiple Choice Question The owner of a put option has the _____ an asset at a fixed price during a stated period of time. Answer
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This note was uploaded on 06/22/2010 for the course FIN 600 taught by Professor Marks during the Spring '10 term at Odessa College.

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Ch24 - COURSES > FUNDAMENTALS OF CORPORATE FINANCE:,...

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