Fınancıal Markets&ınstıtutıons (ENG) — 2021-2022 Dönem Sonu Çıkmış Sınav

1. - refers in general to the magnitude and likelihood of unanticipated changes that have an impact on a firm's cash flows, value or profitability. Which of the following completes the sentence above correctly? A) Volatility B) Venture C) Variance D) Risk E) Securities

2. As opposed to --, the issuer of the -- knows the names of the holders and payments are made directly to the holders. Which of the following completes the sentence above correctly? A) Government bonds, corporate bonds B) Bearer bonds, registered bonds C) Zero-coupon bonds, straight coupon bonds D) Straight coupon bonds, zero-coupon bonds E) Registered bonds, bearer bonds

3. Assume that, ABC Company paid $ 6 dividend per share, and it is expected that the dividends will grow by 4% every year indefinitely. If is it assumed that the desired rate of return is 10%, then what should be the price of ABC stock? A) 82 B) 94 C) 98 D) 104 E) 111

4. Similar to -- and - contracts, -- contracts do not require money exchange at the beginning of the contract, the initial value of the contract is zero. Which of the following completes the sentence above in the correct order? A) Future, option, forward B) Swap, stock, option C) Swap, option, future of. D) Forward, future, option E) Forward, future, swap

5. Suppose there is an investor who buys an American call option of a stock at a strike price of $120 after 5 months from now. The option premium to initiate the contracts is $12. Suppose that the underlying stock price drops to $102. What is the pay-off of this option? A) 18 B) 6 C) O D) 6 E) -12