Top Option Quizzes & Trivia


Option Questions and Answers


  • What does NOMS stand for? 

  • What is the role of the NOMS?

  • What is the role of the Crown Prosecution Service 

  • Using the Black Scholes formula, calculate the price of a 4-month European call option on the British pound. You are given the following details: The current exchange rate is 1.3, the exercise price is 1.3. The risk free interest rate in the United States is 3% per annum whereas the risk free rate in Britain is 4% per annum. The annualized implied volatility in the exchange rate is 20%. The European call option price is:

  • What are the values of u, d and p when a binomial tree is constructed to value an option on a foreign currency. The tree step size is 1 month, the domestic interest rate is 5% per annum, the foreign interest rate is 8% per annum, and the volatility is 12% per annum.  

  • Use the conventional binomial tree method with n=3 steps to calculate the price of a 4-month American put option on the British pound. You are given the following details: The current exchange rate is 1.3, the exercise price is 1.3. The risk free interest rate in the United States is 3% per annum whereas the risk free rate 4% per annum. The annualized implied volatility in the exchange rate is 10%. The price of the American put option is:  

  • Did you enjoy school?

  • Do you do well in exams?

  • Do you want to continue studying in a classroom environment?