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BEC Financial Management Review 22

  1. What are considered options?

    1.----------------------

    2. coverable instruments
    What are considered options?

    1. warrants

    2. coverable instruments
  2. What are considered options?

    1. warrants
    2. ----------------------------
    What are considered options?

    1. warrants

    2. coverable instruments
  3. an ---------------- is a contract which gives the buyer (the owner) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date.
    an option is a contract which gives the buyer (the owner) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date.
  4. what is an option?
    an option is a contract which gives the buyer (the owner) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date.
  5. what is a warrant?
    a warrant is an option to buy a specific amount of common stock at a stated price (the exercise price) usually within a specific time period.
  6. a ---------------------is an option to buy a specific amount of common stock at a stated price (the exercise price) usually within a specific time period
    a warrant is an option to buy a specific amount of common stock at a stated price (the exercise price) usually within a specific time period
  7. what are the 2 types of warrants?

    1. ------------------------

    2. -------------------------
    1. detachable warrant

    2. non-detachable warrant
  8. what is a detachable warrant?
    a detachable warrant may be traded separately from the bond or preferred stock
  9. what is a non-detachable warrant?
    a non-detachable warrant remains with the  underlying security when the security is traded.
  10. what a options exercise value?
    an options exercise or formula value is the value of the warrant if exercised currently.
  11. What is a options actual value?
    an options actual value is the market price.
  12. often warrants ----------------------- are above exercise values yet the premium of ------------------------------- over exercise value tends to diminish with stock increases.
    often warrants market prices are above exercise values yet the premium of market price over exercise value tends to diminish with stock increases
  13. while the --------------------- of the option increases as the stock price increases the premium over exercise value decreases.
    while the market price of the option increases as the stock price increases the premium over exercise value decreases.
  14. while the market price of the option increases as the -------------------------- increases the premium over exercise value decreases.
    while the market price of the option increases as the stock price increases the premium over exercise value decreases.
  15. what is a convertible instrument?
    a convertible instrument or security is an option to exchange a specific amount of bonds or referred sock into a specific amount of common stock under specific conditions
  16. a ---------------------------- or security is an option to exchange a specific amount of bonds or referred sock into a specific amount of common stock under specific conditions
    a convertible instrument or security is an option to exchange a specific amount of bonds or referred sock into a specific amount of common stock under specific conditions
  17. what is a call option?
    a call option is an option to buy stock.
  18. what is an put option?
    a put option is an option to sell stock.
Author
Joens1313
ID
300465
Card Set
BEC Financial Management Review 22
Description
BEC Financial Management Review 22
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