International Finance and Treasury – Set 5 January 29, 2025 by aasi Home › Management › International Finance and Treasury International Finance and Treasury International Finance and Treasury – Set 5 📝 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 5 Dear ! This is International Finance and Treasury – Set 5 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Intrinsic value of put option is exercise price // stock price exercise price – stock price exercise price + stock price exercise price x stock price 2 / 50 2) Time value of an option is added into intrinsic value to calculate market index of an option depreciated value of option appreciated value of option price of an option 3 / 50 3) Consider buying call option, if price of stock rises then buyer of call option has low potential of losses high potential of losses high potential of profit low potential of profit 4 / 50 4) Form of market efficiency which considers speed with which information at public level is impounded in prices of stock is classified as semi-strong form market efficiency expensive form market efficiency weak form of market efficiency strong form of market efficiency 5 / 50 5) When earnings are reinvested instead of payments of dividends then capital gains must increases must decreases must be zero must be one 6 / 50 6) Indexes in which price of stock of companies listed in stock market index are added together and is divided by an adjusted value are classified as herring indexes group indexes John indexes Dow Indexes 7 / 50 7) Process in which group of investment banks distribute securities is classified as task groups syndicate investment groups securitize groups 8 / 50 8) Price at which stock is sold to investors by investment banks is called Gross proceeds cumulative proceeds non-cumulative proceeds net proceeds 9 / 50 9) Type of option that can be exercised only at date of expiration is classified as European option Canadian option Australian option American option 10 / 50 10) Markets in which new securities are issued by corporations to raise funds are called primary markets secondary markets Gross markets proceeds markets 11 / 50 11) Intrinsic value of call option is considered as in money if stock price > exercise price stock price < exercise price bond price > treasury price treasury price < bond price 12 / 50 12) Agreement between two parties to exchange cash flows in future and cash flows are based on underlying instruments is classified as swaps interchange exchange index 13 / 50 13) Type of financial security whose payoff is linked to any other security is called strong security semi-strong security derivate security non-derivate security 14 / 50 14) Composite value of traded stocks group of secondary markets is classified as stock index primary index stock market index limited liability index 15 / 50 15) Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as non-participating preferred stock participating preferred stock non-cumulative preferred stock cumulative preferred stock 16 / 50 16) Contract which gives rights to holders to sell or buy asset at specific time period rather than giving obligation is classified as option contract obligatory contract non-obligatory contract 17 / 50 17) Put option considering interest rates and have multiple exercise dates is classified as swaps multiplier notion multiplier floor cap 18 / 50 18) Margin which must be maintained as soon as futures contract takes place is classified as spot margin maintenance margin futures margin forwards margin 19 / 50 19) Pre-specified price at which underlying asset is bought and sold is called as maturity price strike price exercise price both b and c 20 / 50 20) In interest rate swap transaction, party who pays fixed payments of interest is classified as notion buyer notion seller swap buyer swap seller 21 / 50 21) Intrinsic value of option is $280 and price of option is $350 then time value of option is $125 $135.00 $280 $70 22 / 50 22) Fixed price at which stock is purchased from issuer by investment banks is called non-cumulative proceeds net proceeds Gross proceeds cumulative proceeds 23 / 50 23) Time period between issuance of shares and filing of registration to Securities Exchange Commission is classified as filing period quiet period silence period noise period 24 / 50 24) In syndicate, leading bank which negotiates transaction to issuing bank on behalf of syndicate is called originating house non originating house investment house non securitize house 25 / 50 25) Stock markets in which already issued stocks are resold and re-bought are classified as red herring stock market pre-emptive stock market silence stock market secondary stock markets 26 / 50 26) Orders that are transacted at best available price are classified as post order transacted order market order available order 27 / 50 27) Difference between net proceeds and gross proceeds is called non-participating spread participating spread under writer spread over writer spread 28 / 50 28) Underwriter spread of stock is $17000 and net proceeds of stock are $24000 then gross proceeds are $41,000 $7,000 $17,000.00 $24,000 29 / 50 29) Orders that are transacted at specified price are considered as red herring order limit order unlimited order assets order 30 / 50 30) Types of corporate stock that are traded in exchange markets are common stock preferred stock quoted stock both a and b 31 / 50 31) Right of stockholders of firm that new shares must be offered to existing stockholders first rather than new stock holders is classified as non-offered rights pre-emptive rights existing rights securitize rights 32 / 50 32) Type of trade members who take position for short period of time or sometimes for only few minutes are classified as scalpers explorers temporary position holders professional position holders 33 / 50 33) Price of underlying asset is added into intrinsic value of option to calculate forward price of option exercise price of option book value of option spot price of option 34 / 50 34) Capital gain is 9% and return to stockholder is 18% then periodic payments of dividends are 18.00% 27.00% 25.00% 9.00% 35 / 50 35) Amount of money involved in swap transaction is classified as notion principal swap principal transaction principal time value of swap 36 / 50 36) Type of trading member who takes position every day and also liquidate it on same day is classified as day traders broker traders non-position traders commercial traders 37 / 50 37) Type of exchange members who place buying and selling from public are classified as floor broker roof broker broker of auction leverage investment broker 38 / 50 38) Call option considering interest rates and have multiple exercise dates is classified as floor cap swaps multiplier notion multiplier 39 / 50 39) In public corporation, claim of fundamental ownership is called common stock fundamental stock corporate stock claimed stock 40 / 50 40) If time value of an option is $200 and intrinsic value of an option is $250 then price of option is $50 $550 $200 $250 41 / 50 41) Black Scholes model consider factors which affects an option price and factors are spot price of asset exercise price and exercise date of option price volatility all of these 42 / 50 42) Example of derivative securities is return backed security mortgage backed security cash flow backed security interest backed security 43 / 50 43) Sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to return to common stockholders return on premium bonds return to stock holder return to preferred stock 44 / 50 44) Stock prices of five companies are $50, $60, $55, $58, $63 then initial value of price weighted index is $60 $57.20 $55 $63 45 / 50 45) Total count of all contracts and options such as call, put and futures outstanding at start of working day is classified as non clearing interest clearing interest close interest open interest 46 / 50 46) Type of unit which guarantees that all buying and selling will be made by traders of exchange is called trading house guarantee house clearing house professional house 47 / 50 47) If exercise price of an option is $360 and intrinsic value of an option is $160 then price of an underlying asset is $200 $520 $160 $360 48 / 50 48) Firm in which different voting rights are assigned for different classes of stock is classified as divided class firm sub class firm dual class firm One class firm 49 / 50 49) Type of exchange members who only buy and sell for their personal account are classified as non-investment traders professional traders commercial traders investment traders 50 / 50 50) Up-front fee which must be paid by buyer to seller is called call premium discount premium strike premium exercise premium 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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