Professional Documents
Culture Documents
A1. transaction in which an investor holds a position in the spot market and sells a futures contract or writes a call is
Answer A. B. C. D. E.
above
2.
none of the
Answer A. B.
returns is risk-free has high expected is organized is efficient
C. D.
Answer A.
b.
B.
c.
C. D.
E.
4.
b and c
Which of the following contracts obligates a buyer to buy or sell something at a later date?
Answer A.
call
A call option priced at $2 with a stock price of $30 and an exercise price of $35 allows the holder to buy the stock at
Answer A. B. C. D. E.
6.
Answer A.
e order purchas limit order
B.
C. D.
E.
7.
Answer A. B. C. D. E.
8.
Index options trading on organized exchanges expire according to which of the following cycles?
Answer A. B. C. D. E.
9.
March, June, September, and December each of the next four consecutive months the current month, the next month, and the next two months in one of the other cycles every other month for each of the next nine months none of the above
Answer
A. the clearing house B. Securities Exchange Commission C. the company D. the exchange E. none of the above
10.
Answer A. B. C. D. E.
11.
Answer A. B. C. D. E.
12.
Its time value decreases as expiration approaches Its maximum value is the stock price It can be exercised prior to expiration It pays dividends none of the above
Answer A. a long call B. a short put C. a short stock D. a protective put E. none of the above
13.
Answer A. an uncovered call B. a long put C. a covered call D. a long position in the stock E. it is impossible to tell
14.
Answer A. get rid of the call B. switch to a call with a lower exercise price C. get rid of the stock D. switch to a call with a higher exercise price
Answer A. covered call writer B. call buyer C. put writer D. protective put buyer E. none of the above
16.
Answer A. Minneapolis Grain Exchange B. CBOE Futures Exchange C. Chicago Climate Exchange D. Kansas City Board of Trade E. MidAmerica Commodity Exchange
17.
Which of the following contract terms is not set by the futures exchange?
Answer A. the dates on which delivery can occur B. the expiration months C. the deliverable commodities
Which of the following organizations has the ultimate regulatory authority in the futures industry?
Answer A. National Futures Association B. Commodity Futures Trading Commission C. Commodity Exchange Authority D. Securities and Exchange Commission E. none of the above
19.
Answer A. stock transactions are much smaller B. delivery occurs immediately in a stock transaction C. no money is borrowed in a futures transaction D. futures are much more volatile E. none of the above
20.
If the initial margin is $5,000, the maintenance margin is $3,500 and your balance is $4,000, how much must you deposit?
Answer
If the initial margin is $5,000, the maintenance margin is $3,500 and your balance is $3,100, how much must you deposit?
Answer A. a long-term employment contract at a fixed salary B. an automobile lease non-cancelable for three years C. a rain check D. a signed contract to buy a house in six months E. none of the above
25.
Answer A. performance is guaranteed by the G-30 B. trading is conducted in the evening over computers C. the contracts are private and customized D. trading is less costly and governed by more rules