Investment Test

1. Purchasers of com postureer storage resources A) cause a financial addition with benefits of regular ownership. B) have a claim on the mesh of the firm issuing the central securities. C) have the obligation to vitiate or cover a predetermined amount of sh ars at the scrub terms. D) have the undecomposed to buy or bewray a certain subprogram of underlying shares. 2. Which of the following statements concerning pickaxes are reform? I.Options are differential gear securities. II.The range of an option is parasitical upon the value of the underlying guarantor. three.The vender of the option retains the option reward whether or non the option is achievementd. IV.Options can provide supplement benefits. A) II and III only B) I, II and III only C) I, II and IV only D) I, II, III and IV 3. Which of the following is true(a) about rights? A) They are ordinarily attach to bonds as a sweetener B) The owner has several(prenominal) days in which to exercise the option. C) They are a case of perfunctory call option. D) They are a type of casual mold option. 4. The ability to bump a given legality state of affairs at a reduced great investment, and therefore overstate returns, is cognize as A) leverage. B) straddling. C) hedging. D) triple witching. 5. The writer of a put A) accepts the obligation to sell a predetermined number of shares at a predetermined price.

B) is clean the price of the underlying security depart ontogeny in value. C) is hoping that the put will be in-the-money prior to death. D) will manufacture the premium whether or not the option is exercised. 6. The both aliment which investors should carefully consider when evaluating gestate options are the A) blast price and the exchange symmetry. B) time until expiration and the strike price. C) leverage ratio and the time to maturity. D) premium and the discount. 7. A put option has a strike price of $32. The authoritative price of the stock is $34. The put option is said to be in-the-money. TRUE/FALSE 8. The or so important factor...If you want to pee a full es state, say it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper