Question: The method of auction of future contract in which the traders sell their future contracts at a specified price, by crying out in louder voices is classified as _____________?

• 1. traders gathered auction
• 2. close outcry auction
• 3. specified auction
• 4. open outcry auction

Question: Consider buying the call option, if the price of stock falls then the buyer of call option has ___________?

• 1. high potential of profit
• 2. low potential of profit
• 3. low potential of losses
• 4. high potential of losses

Question: The stock holder who does not have any voting rights in the corporation is considered as ____________?

• 1. sub class voter
• 2. preferred stockholder
• 3. common stock holder
• 4. cumulative voter

Question: The type of voting in which all the directors in voting lists are voted at same time is classified as ___________?

• 1. cumulative voting
• 2. non-cumulative voting
• 3. dual class voting
• 4. limited voting

Question: The type of liability in which the stockholders losses are counted for only the invested amount in the firm is classified as ___________?

• 1. counted liability
• 2. invested liability
• 3. unlimited liability
• 4. limited liability

Question: If the stock price of call option is $300 and the exercise price of call option is $260 then the intrinsic value of option is ___________?

• 1. 260
• 2. 560
• 3. 40
• 4. 300

Question: According to futures contract, the long position states the ___________?

• 1. purchase of forward contracts
• 2. purchase of future contract
• 3. sale of futures contract
• 4. sales of forward contracts

Question: The type of voting in which the owner having half voting shares can elect board of directors is called __________?

• 1. directors voting
• 2. half voting
• 3. straight voting
• 4. owners voting

Question: The form of market efficiency in which stock current prices reflect the volume information and historic prices of company is classified as ____________?

• 1. weak form of market efficiency
• 2. strong form of market efficiency
• 3. semi-strong form market efficiency
• 4. expensive form market efficiency

Question: The intrinsic value of call option is _____________?

• 1. stock price ⁄ exercise price
• 2. stock price – exercise price
• 3. stock price + exercise price
• 4. stock price x exercise price