Advanced Questions - Section 4

The maximum loss of a call option holder is equal to

A.	Strike-Spot Price
B.	Spot Price
C.	Premium
D.	So + Premium
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	Option: C Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

Commercial paper is a type of

A.	Fixed coupon Bond
B.	Unsecured short-term debt
C.	Equity share capital
D.	Government Bond
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	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

A contract which gives the holder a right to buy a particular asset at a particular rate on or before a specified date is known as

A.	European Option
B.	Straddle
C.	American Option
D.	Strangle
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	Option: C Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

Which of the following is not incorporated in Capital Budgeting?

A.	Tax-Effect
B.	Time Value of Money
C.	Required Rate of Return
D.	Rate of Cash Discount.
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	Option: D Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

10:

The maximum loss of a put option writer is equal to

A.	Strike Price - Premium
B.	Strike Price
C.	Spot Price
D.	Strike Price plus premium
	Answer Report Discuss
	Option: A Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

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