Tuesday, May 31, 2011

Option Options

Option Options
 By Finance Ocean

Which of the following option strategies would provide an investor with the greatest gain potential in a rising market?

Pick an answer:
  1. Short Put
  2. Long Put
  3. Short Call
  4. Long Call











Answer: # 4

Explanation: Both long calls and short puts are profitable in a rising market, but long calls have unlimited gain potential.

A short put is limited to the premium received for it.

Take another finance quiz at FinanceOcean.org or read up on
Capital Markets
.

Monday, May 30, 2011

Intangible Accounting

Intangible Accounting
 By Finance Ocean

Which of the following is not an intangible asset?

Pick an answer:
  1. Goodwill
  2. A Patent
  3. A Brand
  4. Options








Answer: # 4


Explanation: Intangible assets are identifiable non-monetary assets that cannot be seen, touched or physically measured. They are created through time and/or effort and are identifiable as a separate asset.

An option is a monetary asset and does not meet the definition of an intangible asset.

Take another finance quiz at FinanceOcean.org or read up on Accounting.

Friday, May 13, 2011

Finance Quiz: Public or Private?

Public or Private?
By Finance Ocean


Which of the following well-known companies is the only public company as of May 2011?

Pick an answer:
  1. Cargill
  2. Chrysler
  3. General Motors
  4. Toys "R" Us












Answer: # 3

Explanation: Although the company filed for Chapter 11 reorganization in June 2009, General Motors emerged from reorganization and was listed on major stock exchanges on November 18, 2010 with the world's largest IPO.

Take another finance quiz  at FinanceOcean.org or read up on Capital Markets.