The NYSE does not exist as physical location

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1. Which of the following statements is CORRECT?

The NYSE does not exist as a physical location. Rather it represents a loose collection of dealers who trade stock electronically.

An example of a primary market transaction would be your uncle transferring 100 shares of Walmart stock to you as a birthday gift.

Capital market instruments include both long-term debt and common stocks.

If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles, this would be a primary market transaction.

While the two frequently perform similar functions, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise large blocks of capital from investors.

2. What is the exercise value (intrinsic value) at the time of purchase (t = 0) to the holder of a put with strike price $120 if the underlying asset is $125 and the put premium is $5

a.0

b.5

c.10

d.15

e.20

Reference no: EM131585434

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