公司理财 习题库 Chap014

CHAPTER14OptionsandCorporateFinanceI.DEFINITIONSOPTIONSa1.Afinancialcontractthatgivesitsownertheright,butnottheobligation,tobuyorsellaspecifiedassetatanagreed-uponpriceonorbeforeagivenfuturedateiscalleda(n)_____contract.a.optionb.futuresc.forwardd.swape.straddleOPTIONEXERCISEb2.Theactwhereanownerofanoptionbuysorsellstheunderlyingasset,asistheirright,iscalled______theoption.a.strikingb.exercisingc.openingd.splittinge.stranglingSTRIKEPRICEc3.Thefixedpriceinanoptioncontractatwhichtheownercanbuyorselltheunderlyingassetiscalledtheoption’s:a.openingprice.b.intrinsicvalue.c.strikeprice.d.marketprice.e.timevalue.EXPIRATIONDATEd4.Thelastdayonwhichanownerofanoptioncanelecttoexerciseisthe_____date.a.ex-paymentb.ex-optionc.openingd.expiratione.intrinsicCHAPTER14AMERICANOPTIONSe5.Anoptionthatmaybeexercisedatanytimeupitsexpirationdateiscalleda(n)_____option.a.futuresb.Asianc.Bermudand.Europeane.AmericanEUROPEANOPTIONSa6.Anoptionthatmaybeexercisedonlyontheexpirationdateiscalleda(n)_____option.a.Europeanb.Americanc.Bermudand.futurese.AsianCALLOPTIONb7.A_____isaderivativesecuritythatgivestheownertheright,butnottheobligation,tobuyanassetatafixedpriceforaspecifiedperiodoftime.a.futurescontractb.calloptionc.putoptiond.swape.forwardcontractPUTOPTIONc8.A_____isaderivativesecuritythatgivestheownertheright,butnottheobligation,tosellanassetatafixedpriceforaspecifiedperiodoftime.a.futurescontractb.calloptionc.putoptiond.swape.forwardcontractARBITRAGEd9.Atradingopportunitythatoffersarisklessprofitiscalleda(n):a.putoption.b.calloption.c.marketequilibrium.d.arbitrage.e.cross-hedge.CHAPTER14INTRINSICVALUEe10.Thevalueofanoptionifitweretoimmediatelyexpire,thatis,it’slowerpricingbound,iscalledanoption’s_____value.a.strikeb.marketc.volatilityd.timee.intrinsicTIMEVALUEa11.Thetimevalueofanoptionisequaltothe:a.option’smarketpriceminusitsintrinsicvalue.b.option’sintrinsicvalueminusitsmarketprice.c.risk-freeinterestrateintheeconomy.d.netpresentvalueoftheoption’scashflows.e.netpresentvalueoftheoption’scashflows,discountedattherisk-freeinterestrate.EMPLOYEESTOCKOPTIONc12.Anemployeestockoptiongivesanemployeetherightto_____sharesofstockinthecompanyata_____priceforafixedperiodoftime.a.sell;fixedb.sell;variablec.buy;fixedd.buy;variablee.eitherbuyorsell;fixedREALOPTIONd13.Anoptionbasedonanunderlyingassetsuchasabuildingorlandiscalleda_____option.a.financialb.liquidc.fixedd.reale.tangibleSTRATEGICOPTIONSb14.Optionsforfuture,relatedbusinessproductsorstrategiesarereferredtoas_____options.a.financialb.strategicc.expansiond.reale.managerialCHAPTER14WARRANTSb15.Asecuritythatgivestheholdertheright,butnottheobligation,topurchasesharesofstockinafirmforafixedpriceoveraspecifiedperiodoftimeiscalleda(n):a.convertiblebond.b.warrant.c.initialpublicoffering.d.seasonedequityoffering.e.forwardsaleofequity.CONVERTIBLEBONDSc16.Abondthatcanbeexchangedforafixednumberofsharesofstockinafirmoveraspecifiedperiodoftimeiscalleda_____bond.a.securedb.warrantedc.convertibled.junke.callableCONVERSIONPRICEd17.Thedollaramountofaconvertiblebond’sparvaluethatisexchangeableforoneshareofstockisthebond’s:a.conversionpremium.b.straightbondvalue.c.conversionvalue.d.conversionprice.e.conversionratio.CONVERSIONRATIOe18.Thenumberofsharesofstockreceivedforeachconvertiblebondconvertedintostockiscalledthe:a.conversionpremium.b.straightbondvalue.c.conversionvalue.d.conversionprice.e.conversionratio.CONVERSIONPREMIUMa19.Thedifferencebetweentheconversionpriceofaconvertiblebondandthecurrentstockprice,dividedbythecurrentstockprice,iscalledthe:a.conversionpremium.b.straightbondvalue.c.conversionvalue.d.conversionprice.e.conversionratio.CHAPTER14STRAIGHTBONDVALUEb20.Thevalueaconvertiblebondwouldhaveifitcouldnotbeconvertedintocommonstockiscalledthe:a.conversionpremium.b.straightbondvalue.c.conversionvalue.d.conversionprice.e.conversionratio.CONVERSIONVALUEc21.Thevalueaconvertiblebondwouldhaveifitweretobeimmediatelyconvertedintocommonstockiscalledthe:a.conversionpremium.b.straightbondvalue.c.conversionvalue.d.conversionprice.e.conversionratio.II.CONCEPTSAMERICANOPTIONSe22.WhichoneofthefollowingstatementscorrectlydescribesyoursituationastheownerofanAmericancalloption?a.Youareobligatedtobuyatasetpriceatanytimeuptoandincludingtheexpirationdate.b.Youhavetherighttosellatasetpriceatanytimeuptoandincludingtheexpirationdate.c.Youhavetherighttobuyatasetpriceonlyontheexpirationdate.d.Youareobligatedtosellatasetpriceiftheoptionisexercised.e.Youhavetherighttobuyatasetpriceatanytimeuptoandincludingtheexpirationdate.AMERICANOPTIONSc23.JeffoptedtoexercisehisAugustoptiononAugust10andreceived$2,500inexchangeforhisshares.Jeffmusthaveowneda(an):a.warrant.b.Americancall.c.Americanput.d.Europeancall.e.Europeanput.CHAPTER14AMERICANOPTIONSc24.MaryoptedtoexerciseheroptionthatexpiredinFebruaryonFebruary1standpaid$3,000toacquire100sharesofstock.Maryprobablyownedoneofwhichtwoofthefollowing?I.awarrantII.anAmericancallIII.aEuropeancallIV.aputa.IandIVonlyb.IIandIIIonlyc.IandIIonlyd.IandIIIonlye.IandIVonlyEUROPEANOPTIONSa25.Jillianownsan