Finance Mcqs
The form of market efficiency which considers the speed with which the information at public level is impounded in the prices of stock is classified as ____________?

A. semi-strong form market efficiency
B. expensive form market efficiency
C. weak form of market efficiency
D. strong form of market efficiency

Consider buying the call option, if the price of stock rises then the buyer of call option has __________?

A. low potential of losses
B. high potential of losses
C. high potential of profit
D. low potential of profit

The Black Scholes model consider the factors which affects an option price, the factors are __________?

A. spot price of asset
B. exercise price and exercise date of option
C. price volatility
D. all of the above

The periodic payments of dividends are subtracted from return to stockholders to calculate ____________?

A. gain on spot contract
B. loss on spot contract
C. gain on capital
D. loss on capital

The residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as ____________?

A. characteristics of fundamental stock
B. characteristics of claimed stock
C. characteristics of common stock
D. characteristics of preferred stock

The capital gains and dividends are considered as components of __________?

A. return
B. equity
C. spot rate contracts
D. forward rate contracts