Black-Scholes Multiple Choice Question

Black-Scholes Multiple Choice Questions (MCQ)

1 - In options pricing, an exercise price rises from lower to higher which leads to ?
Volatile options
Option value increases
Option value decreases
Option value stable
2 - According to Black Scholes model, stocks with call option pays the ?
No dividends
Current price
Past price
3 - Yield on Treasury bill with a maturity is classified as a risk free rate but must be equal to an ?
Option closing price
Option closing price
Option expiration
Option model
4 - According to Black Scholes model, purchaser can borrow fraction of security at risk free interest rate which is ?
Short term
Long term
Transaction cost
No transaction cost
5 - According to Black Scholes model, short term seller receives today's price which ?
Short term cash proceeds
Proceeds in cheques
Full cash proceeds
Zero proceeds
6 - In an option pricing, a rises in risk free rate results in option's value ?
Slight time decreases
Slight increases
Slight decreases
Slight time increases
Learn Black-Scholes Model
Test you knowledge of the Black Scholes option pricing model, use the Black-Scholes Multiple Question Choice (MCQ) test to challenge your comprehension level of Black Scholes model comprehension.
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