**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 IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG. PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX. THANK YOU**

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