1.Consider a two-year call choice with a strike cost of $ 857.5222 on a stock the current

cost of which is likewise $ 165.6550. Expect that there are double cross times of one year and

in every year the stock cost can go up or somewhere near equivalent level of 29.850%.

The danger free loan fee is 6.6354%. Utilizing binominal choice model, figure the

likelihood of cost going all over. Likewise draw a two-venture binomial tree

showing costs and adjustments at every hub.

2. Higher separation Curve implies a ..................level of satisfaction.

(a) Same

(b) Lower

(c) Higher

(d) Different

3. Choking of interest is the result of:

(a) Decrease in the amount of clients.

(b) Increase in the expense of the incredible concerned.

(c) Increase in the expenses of various product.

(d) Decrease in the compensation of purchases.

4.Identify the cofficient of cost versatility of interest when the rate expansion in the

measure of a nice mentioned is more unobtrusive than the rate fall in its expense :

(a) Equal to one

(b) Greater than one

(c) Smaller than one

(d) Zero

5. 14. By virtue of an unacceptable product, the compensation adaptability of interest is :

(a) Positive

(b) Zero

(c) Negative

(d) Infinite

6. A higher absence of interest twist shows a more critical degree of satisfaction. Legitimate/False

(a) Rational

(b) False

(c) Partly obvious

(d) None of these.

7. In case the interest for a nice is inelastic, an extension in its expense will cause the outright utilization of

the buyers of the product to :

(a) Remain something comparable

(b) Increase

(c) Decrease

(d) Any of these

8. The law of interest is :

(a) A quantitative declaration

(b) Qualitative cleaniness

(c) Both a quantitative and an emotional clarification

(d) Neither a quantitative nor an emotional affirmation

9. The total of coming up next are determinants of interest except for :

(a) Tastes and tendencies

(b) Quantity gave

(c) Income

(d) Price of related items

10.The client is in balance at a point where the spending line :

(a) Is over a detachedness twist

(b) Is under a lack of approachability twist

(c) Is diversion to a lack of approachability twist

(d) Cuts a detachedness twist.