December 2015 - Paper 3

31:   Time value of an option is :
A.

Price of the option - Intrinsic value of option

B.

Intrinsic value of option - Price of the option

C.

Current market price - Exercise price

D.

Exercise price - Current market price

 
 

Option: A

Explanation :

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32:   According to the CAPM, overpriced securities have:
A.

Zero Betas

B.

Negative Betas

C.

Zero Alphas

D.

Negative Alphas

 
 

Option: D

Explanation :

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33:  

Match the items of List - I with those of List - II :

List - I

 

List - II

 

(a) Customer-segment pricing

(i) Pricing products differently but not proportionately to their costs

(b) Product Form Pricing

(ii) Pricing products differently even though the cost of offering at that arena is the same

(c) Location pricing

 

(iii) Pricing differently even though the products are same

(d) Time pricing

 

( iv) Pricing differently for the different seasons

 

A.

(iv) (iii) (i) (ii)

B.

(iii) (i) (ii) (iv)

C.

(ii) (i)  (iv) (iii)

D.

(i) (iv) (iii) (ii)

 
 

Option: B

Explanation :

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34:  

Which of the following is not primarily a responsibility of producers for their channel members?

A.

Establishing price policies

B.

Condition of sales

C.

Distributors' territorial rights

D.

Establishing distribution efficiencies

 
 

Option: D

Explanation :

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35:  

An aspect of personality which is responsible for dealing with reality; functions in conscious, preconscious and unconscious mind and where the reality principle weighs the costs and benefits of an action before deciding to act upon or abandon impulse is called:

A.

Id

B.

Ego

C.

Superego

D.

InnerseIf

 
 

Option: B

Explanation :

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