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International Finance and Treasury MCQ Questions and Solutions with Explanations | Management

International Finance and Treasury MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. International FinanceMCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam. Page-4 section-7

Each section contains 100 MCQs on International Finance and Treasury .
31
Intrinsic value of call option is
Discuss
Answer & Solution
Answer: Option B
Solution:
Intrinsic value of call option is stock price - exercise price. The intrinsic value of both call and put options is the difference between the underlying stock's price and the strike price. In the case of both call and put options, if the calculated value is negative, the intrinsic value is zero.
32
Number of shares outstanding are multiplied to price of stock to calculate
Discuss
Answer & Solution
Answer: Option B
Solution:
Number of shares outstanding are multiplied to price of stock to calculate current market values. The current market value (CMV) is the approximate current resale value for a financial instrument.
33
Gross proceeds of stock is $37000 and underwriter spread is $25000
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
34
Type of index in which current values of stock are added together and divided by value of stock on base date is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Type of index in which current values of stock are added together and divided by value of stock on base date is classified as value weighted index. A value-weighted index assigns a weight to each company in the index based on its value or market capitalization.
35
Buying price of stock is $35 and it can be sold for $30 whereas dividend paid is $6 then return on stock is
Discuss
Answer & Solution
Answer: Option A
Solution:
Margin = 35- 30 = 5
Dividend = 6
Total return = 11
Cost = 30
Return on stock 11/30 × 100 = 36.67%
36
Particular place at which transactions of New York stock exchange occurs is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Particular place at which transactions of New York stock exchange occurs is classified as trading post. A trading post, trading station, or trading house, also known as a factory, was in past centuries an establishment for factors and merchants carrying on business in thinly inhabited and developed regions or countries.
37
Type of contract which involves immediate exchange of funds and assets is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Type of contract which involves immediate exchange of funds and assets is classified as spot contract. A spot contract is a document that has a purchase or sale of a currency, security, or commodity for quick delivery and payment for the spot date, which is around two days after the trade date.
38
Major participants in forward markets are
Discuss
Answer & Solution
Answer: Option D
Solution:
Major participants in forward markets are commercial banks, broker deals and investment banks.
39
Type of bonds that pay coupon interest are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Type of bonds that pay coupon interest are classified as coupon bond. A coupon bond is a type of bond. The bond issuer borrows capital from the bondholder and makes fixed payments to them at a fixed (or variable) interest rate for a specified period. that includes attached coupons and pays periodic (typically annual or semi-annual) interest payments during its lifetime and its par value.
40
For given change in interest rates, percentage change in present value of bond is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
For given change in interest rates, percentage change in present value of bond is classified as price sensitivity. Price sensitivity can be defined as the degree to which consumers' behaviors are affected by the price of the product or service. Price sensitivity is also known as price elasticity of demand and this means the extent to which sale of a particular product or service is affected.