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Finance → MCQs of Corporate Finance from 96 to 100

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**96.** If the co-variance between stock A and market returns is 12, and the standard deviation of market returns is 3 then what is the value of beta?

(A) 0.96

(B) 1.0

(C) 1.33

(D) 1.45

**97.** Difference between strike price and stock price is called

(A) intrinsic value

(B) option premium

(C) time premium

(D) none of these

**98.** Option value at expiration is a function of:

**(I)** interest rate

**(II)** volatility

**(III)** stock price

**(IV)** exercise price

(A) I only

(B) III only

(C) I and II

(D) III and IV

**99.** If market price of the share at expiration is $100 and exercise price is $80, then value of a call option at expiration is

(A) –$20

(B) $0

(C) $1

(D) $20

**100.** If market price of the share at expiration is $100 and exercise price is $80, then value of a put option at expiration is

(A) –$20

(B) $0

(C) $1

(D) $20

**ANSWERS: MCQS OF CORPORATE FINANCE**

96. (C) 1.33

97. (A) intrinsic value

98. (D) III and IV

99. (D) $20

100. (B) $0