M C Q s D r i v e

Management Sciences 5307 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

Long-term equity anticipation security is usually classified as__________?
A Short-term options
B Long-term options
C Short money options
D Yearly call
Correct Answer: Long-term options
An option that gives investors right to sell a stock at predefined price is classified as____________?
A Put option
B Call option
C Money back options
D Out of money options
Correct Answer: Put option
An increase in value of option leads to low present value of exercise cost only if it has____________?
A Low volatility
B Interest rates are high
C Interest rates are low
D High volatility
Correct Answer: Interest rates are high
In financial planning, most high option price will lead to__________?
A Longer option period
B Smaller option period
C Lesser price
D Higher price
Correct Answer: Longer option period
An investor who writes stock call options in his own portfolio is classified as__________?
A Due option
B Covered option
C Undue option
D Uncovered option
Correct Answer: Covered option
An investor who buys shares and writes a call option on stock is classified as__________?
A Put investor
B Call investor
C Hedger
D Volatile hedge
Correct Answer: Hedger
Greater value of option, larger span of time value is usually results in__________?
A Shorter call option
B Longer call option
C Longer put option
D Shorter put option
Correct Answer: Longer call option
If current price increases from lower to higher then an____________?
A Option value equal to one
B Option value will increase
C Option value will decrease
D Option value equal to zero
Correct Answer: Option value will increase
According to Black Scholes model, selling and buying of stock have_______?
A Discount rate
B Transaction costs
C No transaction costs
D No discounts
Correct Answer: Transaction costs
Movement of price or rise or fall of prices of options is classified as_________?
A Option lattice
B Pricing movement
C Price change
D Binomial lattice
Correct Answer: Binomial lattice