M C Q s D r i v e

Management Sciences 5308 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

The amount of money involved in swap transaction is classified as ___________?

A notion principal
B swap principal
C transaction principal
D time value of swap
Correct Answer: notion principal

If the time value of an option is $200 and the intrinsic value of an option is $250 then the price of option is _________?

A 450
B 550
C 200
D 250
Correct Answer: 450

The price at which the stock is sold to investors by the investment banks is called ____________?

A Gross proceeds
B cumulative proceeds
C non-cumulative proceeds
D net proceeds
Correct Answer: Gross proceeds

Consider the call option writing, the probability that a buyer would have positive payoff increases with the ___________?

A increase in stock price
B decrease in stock price
C increase in maturity duration
D decrease in maturity duration
Correct Answer: decrease in stock price

When the price of underlying asset increases then the good option is __________?

A buy the call option
B sell the call option
C buy the put option
D sell the put option
Correct Answer: buy the call option

In interest rate swap transaction, the party who pays the floating payments of interest is considered as __________?

A notion buyer
B notion seller
C swap buyer
D swap seller
Correct Answer: swap seller

The situation in which the large portion of majority is borrowed from the broker of investor is classified as ___________?

A future investment
B forward investment
C leveraged investment
D non-leveraged investment
Correct Answer: leveraged investment

The type of swaps in which the fixed payments of interest are exchanged by two counterparties for floating payments of interest are called _________?

A float-fixed swaps
B interest rate swaps
C indexed swaps
D counter party swaps
Correct Answer: interest rate swaps

The inverse relationship between price change and interest rate change is represented by ___________?

A negative discount
B negative duration
C positive duration
D positive discount
Correct Answer: negative duration

The direct relationship between price change and interest rate change is represented by __________?

A positive duration
B positive discount
C negative discount
D negative duration
Correct Answer: negative duration