121. If market price of the share at expiration is $100 and exercise price is $80, then value of a call option at expiration is

(A) –$20
(B) $0
(C) $1
(D) $20

122. If market price of the share at expiration is $100 and exercise price is $80, then value of a put option at expiration is
(A) –$20
(B) $0
(C) $1
(D) $20

123. Cost of capital is equal to required return rate on equity in case if investors are only__________?
A. Valuation manager
B. Common stockholders
C. Asset seller
D. Equity dealer

124. A type of beta which incorporates about company such as changes in capital structure is classified as___________?
A. Industry Beta
B. Market Beta
C. Subtracted Beta
D. Fundamental Beta

125. A formula of after-tax component cost of debt is___________?
A. Interest rate-tax savings
B. Marginal tax-required return
C. Interest rate + tax savings
D. Borrowing cost + embedded cost

126. According to Black Scholes model, stocks with call option pays the__________?
A. Dividends
B. No dividends
C. Current price
D. Past price

127. Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be__________?
A. 0.86%
B. 1.16%
C. 2.50%
D.−2.5%

128. When the stock market is rising it is called__________?
A. Booming
B. Bullish
C. Upward tendency
D. Hawkish

129. Dow Jones is stock exchange market of__________?
A. Tokyo
B. London
C. New York
D. None of these

130. Income that is saved and not invested is known as____________?
A. Capital
B. Deposit
C. Hoarding
D. None

NOTE
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