If you’re looking for assistance with financial management and preparing for accounting exams, Gurumcqs has over 2000 Finance MCQs with detailed explanations. The Finance MCQs section includes important questions related to financial management, financial accounting for finance and accounting Jobs, and Business Finance. These MCQs cover various topics such as Finance Basics, Time Value of Money, Future Value, Present Value, Future Annuity, Shares, Risk & Return, Capital Budgeting, General Financial Rules, Working Capital Management, financial accounting, and more. Additionally, you can also find software engineering MCQs questions and answers on the platform.

141. Cost of common stock is 16% and bond yield is 9% then bond risk premium would be_________?
A. 7%
B. 8%
C. 1.78%
D. 25%

142. According to Black Scholes model, selling and buying of stock have_______?
A. Discount rate
B. Transaction costs
C. No transaction costs
D. No discounts

143. If current price increases from lower to higher then an____________?
A. Option value equal to one
B. Option value will increase
C. Option value will decrease
D. Option value equal to zero

144. Greater value of option, larger span of time value is usually results in__________?
A. Shorter call option
B. Longer call option
C. Longer put option
D. Shorter put option

145. An investor who buys shares and writes a call option on stock is classified as__________?
A. Put investor
B. Call investor
C. Hedger
D. Volatile hedge

146. An investor who writes stock call options in his own portfolio is classified as__________?
A. Due option
B. Covered option
C. Undue option
D. Uncovered option

147. In financial planning, most high option price will lead to__________?
A. Longer option period
B. Smaller option period
C. Lesser price
D. Higher price

148. An increase in value of option leads to low present value of exercise cost only if it has____________?
A. Low volatility
B. Interest rates are high
C. Interest rates are low
D. High volatility

149. An option that gives investors right to sell a stock at predefined price is classified as____________?
A. Put option
B. Call option
C. Money back options
D. Out of money options

150. Long-term equity anticipation security is usually classified as__________?
A. Short-term options
B. Long-term options
C. Short money options
D. Yearly call