International Finance and Treasury – Set 4 January 29, 2025 by aasi Home › Management › International Finance and Treasury International Finance and Treasury International Finance and Treasury – Set 4 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 International Finance and Treasury – Set 4 Dear ! This is International Finance and Treasury – Set 4 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Type of index in which current values of stock are added together and divided by value of stock on base date is classified as value weighted index herring weighted index primary market index stock market index 2 / 50 2) Difference between price of underlying asset and exercise price of option is classified as extrinsic value of European option intrinsic value of option extrinsic value of option intrinsic value of European option 3 / 50 3) Type of option that can be exercised before date of expiration as well as on expiry date is classified as Australian option American option European option Canadian option 4 / 50 4) Gross proceeds of stock is $37000 and underwriter spread is $25000 $25,000.00 $37,000 $12,000 $62,000 5 / 50 5) According to futures contract, long position states purchase of forward contracts purchase of future contract sale of futures contract sales of forward contracts 6 / 50 6) Intrinsic value of an option is $490 and price of underlying asset is $290 then exercise price of an option is $290 $780 $490 $200 7 / 50 7) Capital gains and dividends are considered as components of return equity spot rate contracts forward rate contracts 8 / 50 8) Type of voting in which owner having half voting shares can elect board of directors is called directors voting half voting straight voting owners voting 9 / 50 9) Voting ballot that is sent to stock holders by corporation is classified as corporate paper white voting paper screened paper proxy 10 / 50 10) If price of an option is $475 and time value of money is $375 then intrinsic value of an option is $375 $100 $475 $850 11 / 50 11) Difference between intrinsic value of option and price of option is classified as spot value of option time value of US treasury time value of option time value of bond 12 / 50 12) Return to stockholders is 15% and periodic dividend payments are 11.5% then gains on capital are 2.65% 3.50% 1.30% 4.30% 13 / 50 13) Periodic payments of dividends are subtracted from return to stockholders to calculate gain on spot contract loss on spot contract gain on capital loss on capital 14 / 50 14) Consider buying call option, if price of stock falls then buyer of call option has high potential of profit low potential of profit low potential of losses high potential of losses 15 / 50 15) Residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as characteristics of fundamental stock characteristics of claimed stock characteristics of common stock characteristics of preferred stock 16 / 50 16) Consider buying put option, if price is lower at expiration date of option then the liquidity will be higher loss will be higher profit will be lower profit will be higher 17 / 50 17) Type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as non participating preferred stock participating preferred stock non cumulative preferred stock cumulative preferred stock 18 / 50 18) Particular place at which transactions of New York stock exchange occurs is classified as trading post issuance post silence post sellers post 19 / 50 19) Gross proceeds of stock is $24000 and net proceeds are $35000 then under writers spread is $15,000 $13,500 $16,750 $11,000 20 / 50 20) Type of option that gives right to buyer to sell underlying option at specific exercise price is considered as call option put option European option Australian option 21 / 50 21) Form of market efficiency in which stock current prices reflects volume information and historic prices of company is classified as weak form of market efficiency strong form of market efficiency semi-strong form market efficiency expensive form market efficiency 22 / 50 22) Prices that are adjusted day to day to picture current conditions of futures markets are classified as market future prices market to market prices market to invest prices present market prices 23 / 50 23) Type of liability in which stockholders losses are counted for only invested amount in firm is classified as counted liability invested liability unlimited liability limited liability 24 / 50 24) If stock price of call option is $300 and exercise price of call option is $260 then intrinsic value of option is $260.00 $560 $40 $300 25 / 50 25) Type of contract which involves exchange of assets will be occurred in future at price settled daily is classified as spot contract forward contract future contracts present contract 26 / 50 26) Type of voting in which all directors in voting lists are voted at same time is classified as cumulative voting non-cumulative voting dual class voting limited voting 27 / 50 27) Stock holder who does not have any voting rights in corporation is considered as sub class voter preferred stockholder common stock holder cumulative voter 28 / 50 28) Under writer spread is subtracted from gross proceeds to calculate Gross proceeds cumulative proceeds non cumulative proceeds net proceeds 29 / 50 29) Under writer spread is $47500 and gross proceeds are $34000 then net proceeds are $13,500 $81,500 $47,500.00 $34,000 30 / 50 30) Underwriter spread of stock is added to net proceeds to calculate value of over writer spread Gross proceeds participation proceeds non participation proceeds 31 / 50 31) Number of shares outstanding are 10000 and price of stock is $50 then current market price is $10,000 $100,000 $500,000 $200,000 32 / 50 32) Prospectus which describe new securities are distributed before their registration is classified as red herring prospectus white herring prospectus pre-emptive prospectus securitized prospectus 33 / 50 33) Intrinsic value of call option is stock price // exercise price stock price – exercise price stock price + exercise price stock price x exercise price 34 / 50 34) Feature of stock which allows stock holders to buy shares at price below than market price is called shares offering price offering rights offering stock offering 35 / 50 35) Votes for each stock holder were multiplied to number of elected directors to calculate number of cumulative class number of votes assigned number of elective candidates number of common stock shares 36 / 50 36) Deposit that are required in futures contract and is considered as guarantee that conditions of contracts would be fulfilled is classified as initial margin futures margin conditional margin non-conditional margin 37 / 50 37) Intrinsic value of call option is considered as out of money if bond price > treasury price treasury price < bond price stock price > exercise price stock price < exercise price 38 / 50 38) Buying price of stock is $35 and it can be sold for $30 whereas dividend paid is $6 then return on stock is 36.67% 46.67% 26.67% 26.67% 39 / 50 39) Capital gains are 14% and periodic payments to stock holder are 11% then return on stock investment for stock holder is 30.00% 24.00% 25.00% 15.00% 40 / 50 40) Type of preferred stock whose paid dividends are more than promised dividends is classified as non cumulative preferred stock cumulative preferred stock non participating preferred stock participating preferred stock 41 / 50 41) Position which occurs because of selling floor and buying cap is classified as floating collar fixed collar currency collar collar 42 / 50 42) Speed with which prices of stocks are adjusted to unexpected news related to interest rates is called news efficiency adjusted efficiency expected efficiency market efficiency 43 / 50 43) Method of auction of futures contract in which traders sell their futures contracts at a specified price by crying out in louder voices is classified as traders gathered auction close outcry auction specified auction open outcry auction 44 / 50 44) Security which has characteristics of common stock and bonds both at same time is classified as preferred stock voted stock cumulative stock fundamental stock 45 / 50 45) Residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as characteristics of fundamental stock characteristics of claimed stock characteristics of common stock characteristics of preferred stock 46 / 50 46) Number of shares outstanding are multiplied to price of stock to calculate secondary market values current market values past market values primary market values 47 / 50 47) Intrinsic value of option is subtracted from exercise price of an option to calculate forward price of asset price of underlying asset future price of asset spot price of asset 48 / 50 48) Type of traders who take position in market of futures which is based on expectations of prices of underlying assets are classified as professional traders non-investment traders position traders future market traders 49 / 50 49) Swaps that are classified as long term contracts are currency swaps notion swaps floating swaps fixed swaps 50 / 50 50) Form of market efficiency which states that prices of stock reflects public and private information of firm is classified as weak form of market efficiency strong form of market efficiency semi-strong form market efficiency expensive form market efficiency Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable review with us. 🙌 🌟 Thank you for your support! 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