FINA 412 Options and Futures Quiz: Topics 10, 11, and 12: Attempt review | Moodle FALL 2025-2026 Concordia
University
Started on Saturday, 6 December 2025, 7:09 PM
State Finished
Completed on Saturday, 6 December 2025, 7:34 PM
Time taken 25 mins 4 secs
Grade Not yet graded
Information
Participation in the quizzes falls under the Participation grading component. Quiz marks are for your information only to help you
track your learning progress. The quiz marks won't count toward the course grade, only the quiz participation, that means, whether
you have completed all quizzes, or not within the given timeframe.
Quizzes cannot be reopened after the completion deadline.
Also, a reminder that when taking part in the quizzes on Moodle, students must demonstrate the effort of trying to respond to the
quiz questions after reviewing the relevant study material first.
Example: A quiz attempt completed in a very short time, e.g. less than 5 minutes, for example, or in a similar time frame, cannot
count toward the participation grading component, among others.
Information
In some questions (Multiple Choice Selection) on the following pages, there can be one or more correct statements - in this case,
select all that apply. Incorrect choices would lead to a deduction of points.
Question 1
Correct
Mark 3.00 out of 3.00
Which of the following describes how American options can be valued using a binomial tree?
Check whether early exercise is optimal at all nodes where the option is in-the-money.
Check whether early exercise is optimal at the final nodes.
Check whether early exercise is optimal at the penultimate nodes and the final nodes.
None of the listed.
The correct answer is: Check whether early exercise is optimal at all nodes where the option is in-the-money.
, Question 2
Correct
Mark 3.00 out of 3.00
Which of the following is NOT true in a risk-neutral world?
The expected return on a call option is independent of its strike price.
The discount rate used for the expected payoff on an option is the risk-free rate.
The expected return on a stock is the risk-free rate.
Investors expect higher returns to compensate for higher risk.
The correct answer is: Investors expect higher returns to compensate for higher risk.
Question 3
Correct
Mark 3.00 out of 3.00
What does N(x) denote?
The area under a normal distribution beyond x.
The area under a normal distribution up to x.
The area under the normal distribution between -x and x.
The area under a normal distribution from zero to x.
The correct answer is: The area under a normal distribution up to x.
University
Started on Saturday, 6 December 2025, 7:09 PM
State Finished
Completed on Saturday, 6 December 2025, 7:34 PM
Time taken 25 mins 4 secs
Grade Not yet graded
Information
Participation in the quizzes falls under the Participation grading component. Quiz marks are for your information only to help you
track your learning progress. The quiz marks won't count toward the course grade, only the quiz participation, that means, whether
you have completed all quizzes, or not within the given timeframe.
Quizzes cannot be reopened after the completion deadline.
Also, a reminder that when taking part in the quizzes on Moodle, students must demonstrate the effort of trying to respond to the
quiz questions after reviewing the relevant study material first.
Example: A quiz attempt completed in a very short time, e.g. less than 5 minutes, for example, or in a similar time frame, cannot
count toward the participation grading component, among others.
Information
In some questions (Multiple Choice Selection) on the following pages, there can be one or more correct statements - in this case,
select all that apply. Incorrect choices would lead to a deduction of points.
Question 1
Correct
Mark 3.00 out of 3.00
Which of the following describes how American options can be valued using a binomial tree?
Check whether early exercise is optimal at all nodes where the option is in-the-money.
Check whether early exercise is optimal at the final nodes.
Check whether early exercise is optimal at the penultimate nodes and the final nodes.
None of the listed.
The correct answer is: Check whether early exercise is optimal at all nodes where the option is in-the-money.
, Question 2
Correct
Mark 3.00 out of 3.00
Which of the following is NOT true in a risk-neutral world?
The expected return on a call option is independent of its strike price.
The discount rate used for the expected payoff on an option is the risk-free rate.
The expected return on a stock is the risk-free rate.
Investors expect higher returns to compensate for higher risk.
The correct answer is: Investors expect higher returns to compensate for higher risk.
Question 3
Correct
Mark 3.00 out of 3.00
What does N(x) denote?
The area under a normal distribution beyond x.
The area under a normal distribution up to x.
The area under the normal distribution between -x and x.
The area under a normal distribution from zero to x.
The correct answer is: The area under a normal distribution up to x.
