Hull:Options,Futures,andOtherDerivatives,NinthEditionChapter26:ExoticOptionsMultipleChoiceTestBank:Questions1.AnAsianoptionisatermusedtodescribewhichofthefollowingA.AnoptionwherethepayoffdependsonwhetherabarrierishitB.AnoptionwherethepayoffdependsontheaveragevalueofavariableoveraperiodoftimeC.AnoptionthattradesonanexchangeintheFarEastD.Anyoptionwithanonstandardpayoff2.Asthebarrierisobservedmorefrequently,whichofthefollowingistrueforaknock-outoption?A.ItbecomesmorevaluableB.ItbecomeslessvaluableC.ThereisnoeffectonvalueD.Itmaybecomemorevaluableorlessvaluable3.Therearetwotypesofregularoptions(callsandputs).Howmanytypesofcompoundoptionsarethere?A.TwoB.FourC.SixD.Eight4.Therearetwotypesofregularoptions(callsandputs).Howmanytypesofbarrieroptionsarethere?A.TwoB.FourC.SixD.Eight5.Inashoutcalloptionthestrikepriceis$30.Theholdershoutswhentheassetpriceis$40.Whatisthepayofffromtheoptionifthefinalassetpriceis$35?A.$0B.$5C.$10D.$156.AfloatinglookbackcalloptionpaysoffwhichofthefollowingA.TheamountbywhichthefinalstockpriceexceedstheminimumstockpriceB.TheamountbywhichthemaximumstockpriceexceedsthefinalstockpriceC.TheamountbywhichthestrikepriceexceedstheminimumstockpriceD.Theamountbywhichthemaximumstockpriceexceedsthestrikeprice7.AfixedlookbackputoptionpaysoffwhichofthefollowingA.TheamountbywhichthefinalstockpriceexceedstheminimumstockpriceB.TheamountbywhichthemaximumstockpriceexceedsthefinalstockpriceC.TheamountbywhichthestrikepriceexceedstheminimumstockpriceD.Theamountbywhichthemaximumstockpriceexceedsthestrikeprice8.WhichofthefollowingisequivalenttoalongpositioninaEuropeancalloption?A.Ashortpositioninacash-or-nothingputoptionplusalongpositioninanasset-or-nothingputoptionB.Alongpositioninanasset-or-nothingputoptionplusalongpositioninacash-or-nothingputoptionC.Alongpositioninanasset-or-nothingcalloptionplusalongpositioninacash-or-nothingcalloptionD.Alongpositioninanasset-or-nothingcalloptionplusashortpositioninacash-or-nothingcalloption9.Whichofthefollowingisequivalenttoashortpos...
