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 ?

Dividends

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

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