. Fill in the blank using a number of terms listed below (@1 point). Annuity due, Asset Mgmt ratio, Call, Comparisons, Comparative ratio analysis, Corporation, Covered, Current Ratio, DSO, Du Pont Equation , Equal, Future performance, Greater, Higher, In-the-money, Less, Liquidity, Lower, Option, Ordinary Annuity, Out-of-the-money, Percentage, Perpetuity, Put, PV, Quick, Reduced, TIE, TATO, Trend Analysis, Writer 11. The payment or receipt of equal amounts, at the end of a series of equal periods, for a specified amount of time is called a(n) _______________. 12. When a loan is amortized over a five year term, the amount of interest paid is ________________ each year. 13. You have just won a $5 million lottery to be received in twenty annual equal payments of $250,000. What will happen to the present value of your winnings if the interest rate increases? It will be worth _________________. 14. The more frequent the compounding the _________________ the effective interest rate. 15. More frequent compounding results in _______________ future values and _______________ present values than less frequent compounding at the same nominal interest rate. 16. A(n) _______________ is a financial instrument that agrees to pay an equal amount of money per period into the indefinite future (i.e. forever). 17. A(n) _________________ is a contract which gives its holder the right to buy(or sell) an asset at some predetermined price within a specified period of time. 18. The seller of an option is called the option __________________. 19. An investor who writes call options against stock held in his or her portfolio is said to be selling _______________ options. 20. When the exercise price exceeds the current stock price, a call option is said to be _____________________; however, when the exercise price is less than the current price of the underlying stock, a call option is _________________. 21. An option which gives you the right to sell a stock at a specified price within some future period is called a(n) _____________
nswer for the fill in the blanks are as follow
11 The payment or receipt of equal amounts, at the end of a series of equal periods, for a specified amount of time is called a(n) _Annuity due
12. When a loan is amortized over a five year term, the amount of interest paid is reduced__ each year.
13. You have just won a $5 million lottery to be received in twenty annual equal payments of $250,000. What will happen to the present value of your winnings if the interest rate increases? It will be worth __Option____.
14. The more frequent the compounding the _______Greater__ the effective interest rate.
15. More frequent compounding results in ________Higer_______ future values and __Lower___ present values than less frequent compounding at the same nominal interest rate.
16. A(n) Perpetuity_ is a financial instrument that agrees to pay an equal amount of money per period into the indefinite future (i.e. forever).
17. A(n) __Option______ is a contract which gives its holder the right to buy(or sell) an asset at some predetermined price within a specified period of time.
18. The seller of an option is called the option __Writer
19. An investor who writes call options against stock held in his or her portfolio is said to be selling __Covered___ options.
20. When the exercise price exceeds the current stock price, a call option is said to be ___Out-of-the-money__; however, when the exercise price is less than the current price of the underlying stock, a call option is _______in the money____.
21. An option which gives you the right to sell a stock at a specified price within some future period is called a(n) ___Put___ option.