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mcqs QUESTION 1- Which option price(s) will increase when the interest rate increases? 1. Answer cannot be determined from the information provided O 2. call

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mcqs
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QUESTION 1- Which option price(s) will increase when the interest rate increases? 1. Answer cannot be determined from the information provided O 2. call only 03. put only 4. neither the call nor the put 5. both the call and put QUESTION 7 2-Which one of the following statements concerning the relationship between time to option maturity and call and put prices is correct? 01. Call prices tend to increase faster than put prices as the time to option maturity increases 2. Put prices increase while call prices remain constant as the time to option maturity Increases 3. Put and call prices increase at the same rate as the time to option maturity increases. 4. Put prices and time to maturity are inversely related 5. Call prices are inversely related to time to maturity Click Save and submit to save and submit. Click Save All Answers to save all answers. hp QUESTIONS 4-Which one of the following statements is correct concering the Black Scholes option pricing modet? 1. The model is based on American-style options 2. The model assumes the put is in the money 3. The model assumes that the current stock price is equal to the strike price 04. The model assumes a stock pays a constant annual dividend 05. The model expresses time in terms of years, QUESTION 9 5-Employee stock options grant an employee which one of the following rights? 1. right to sell shares of the employer's stock 2. right to buy shares in an S&P 500 index fund 3.right to buy shares of the employer's stock 4. right to sell shares in an S&P 500 index fund 5.right to buy shares in the employer's retirement plan QUESTION 18 Which of the following do technical analysts believe is a lower bound on a stock's price? 1. Moving average 2. Resistance 3. Trendline 4. Support QUESTION 19 Which of the following is not part of technical analysis? 1. Channels O 2. Support level O 3. P/E ratio 4.Trendline

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