art mcqs

Input call parity relationship, present value of exercise price is added to call option which is equal to

by
put option stock
call option + stock
call option + market price
put option + market price
✅ The correct answer is A.
Input call parity relationship, present value of exercise price is added to call option which is equal to put option stock. A put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of which accounting concept?

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Matchig concept
Accrual concept
Prudence concept
Substance over form concept
✅ The correct answer is D.
Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of Substance over form concept.

Beta coefficient is used to measure market risk which is an index of

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coefficient risk volatility
market risk volatility
stock market volatility
portfolio market portfolio
✅ The correct answer is C.
Beta coefficient is used to measure market risk which is an index of stock market volatility. In the securities markets, volatility is often associated with big swings in either direction. For example, when the stock market rises and falls more than one percent over a sustained period of time, it is called a “volatile” market.

Which is correct

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In insurance subsidy plays a part in fixing premium
Losses are shared by subsidy
A few persons have to share the loss of many
Losses of a few persons are shared by many persons thus reducing the burden of contribution to loss compensation
✅ The correct answer is D.
Losses of a few persons are shared by many persons thus reducing the burden of contribution to loss compensation.

The law of consumer surplus is based on

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Indifference curve analysis
Revealed preference theory
Law of substitution
The law of diminishing marginal utility
✅ The correct answer is D.
The law of consumer surplus is based on the law of diminishing marginal utility. The concept of consumer surplus is derived from the law of diminishing marginal utility. As per the law, as we purchase more of a commodity, its marginal utility reduces. Since the price is fixed, for all units of the goods we purchase, we get extra utility. This extra utility is consumer surplus.

A firm which outsources its works requires ___________.

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more employees
less employees
skilled employees
semi-skilled employees
✅ The correct answer is B.
A firm which outsources its works requires less employees. Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff.