Investment Management MCQs

Investment Management MCQs

Our experts have gathered these Investment Management MCQs through research, and we hope that you will be able to see how much knowledge base you have for the subject of Investment Management by answering these multiple-choice questions.
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1: A european call option gives the buyer the right to _________.

A.   Buy the underlying asset at the exercise price only at the expiration date

B.   Buy the underlying asset at the exercise price on or before the expiration date

C.   Buy the underlying asset at the exercise price on or after the expiration date

D.   Buy the underlying asset at the exercise price only after the expiration date

2: The __________ was established to protect investors from losses if their brokerage firms fail.

A.   CFTC

B.   SEC

C.   SIPC

D.   AIMR

3: All else equal, call option values are _____ if the _____ is lower.

A.   Higher; stock price

B.   Higher; exercise price

C.   Lower; dividend payout

D.   Lower; stock volatility

4: All else the same, an american-style option will be ______ valuable than a ______ style option.

A.   More; European

B.   Less; European

C.   More; African

D.   More; Asian

5: Sinking funds are commonly viewed as protecting the _______ of the bond.

A.   Holder

B.   Drawer

C.   Issuer

D.   Dealer

6: The yield on tax-exempt bonds is ______.

A.   Less than the yield on taxable bonds

B.   5% and 5.44%

C.   Federal funds

D.   Call option