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Questions in this quiz (13)
1 Which of the following is not a derivative instrument?
- AContract to sell corn
- B Option agreement to buy land
- CInstallment sales agreement
- DMortgage backed security
2Who from the following list would be considered a speculator by entering into a futures or
options contract on commodities?- AFarmer
- BCorn delivery truck driver
- CFood manufacturer
- DNone of the above
- AFarmer
3A mutual fund is engaged in the short term and temporary purchase of index futures, for purposes of minimizing its cash exposures. Which "use" most closely explains their actions?
- ARisk management
- BSpeculation
- CReduced transaction costs
- DRegulatory arbitrage
4During the growing season, a corn farmer sells short corn futures contracts in an amount equal to her crop. If upon harvesting and selling her crop she maintains the contracts, she is then considered a(n):
- AHedger
- BSpeculator
- CArbitrager
- DNone of the above
5All of the following are financially engineered products, except:
- AMortgage
- BMortgage backed security
- CInterest only
- DPrincipal only
6Select the family member who is offering the most diversification to the rest of the family.
- ADad works for General Motors
- BMom works for Goodyear
- CDaughter works for Jiffy Lube
- DSon works for Eli Lilly & Company
7What is the cost of 100 shares of Jiffy, Inc. stock given that the bid-ask prices are
$31.25 - $32.00 and a $15.00 commission per transaction exists?- A$3215
- B$3140
- C $3125
- D$3200
8Assume that you purchase 100 shares of Jiffy, Inc. common stock at the bid-ask prices of $32.00 - $32.50. When you sell, the bid-ask prices are $32.50 - $33.00. If you pay a commission rate of 0.5%, what is your profit or loss?
- A$0
- B$16.25 loss
- C$32.50 gain
- D$32.50 loss
9Assume that you open a 100-share short position in Jiffy, Inc. common stock at the bid-ask price of $32.00 - $32.50. When you close your position, the bid-ask prices are $32.50 - $33.00. If you pay a commission rate of 0.5%, what is your profit or loss on the short investment?
- A$32.50 gain
- B$16.25 loss
- C$132.50 loss
- D$100.00 gain
10Assume that you open a 100-share short position in Jiffy, Inc. common stock at the bid-ask prices of $32.00 - $32.50. When you close your position, the bid-ask prices are $32.50 - $33.00. You pay a commission rate of 0.5%. The market interest rate is 5.0% and the short rebate rate is 3.0%. What is your additional gain or loss due to leasing the asset?
- A $64.00 loss
- B $160.00 loss
- C $96.00 gain
- D$0
11Assume that an investor lends 100 shares of Jiffy, Inc. common stock to a short seller. The bid-ask prices are $32.00 - $32.50. When the position is closed, the bid-ask prices are
$32.50 - $33.00. The commission rate is 0.5%. The market interest rate is 5.0% and the short rebate rate is 3.0%. Calculate the gain or loss to the lender. Assume the lender is not subject to a bid-ask loss or commissions.- A$164.00 gain
- B$164.00 loss
- C$100.00 gain
- D $100.00 loss
12According to trading volume data tabulated by the Wall Street Journal for April 15, 2010, which index futures contact experienced the highest total open interest?
- ADJ Industrial Average
- BS&P 500 Index
- CMini S&P 500
- DMini Nasdaq 100
13A firm provides a service that benefits from decreasing employment. This firm has a risk exposure to macro event. All other variables being equal, which of the following derivative securities is the firm most likely use to hedge its exposure?
- AShort position in an economic futures
- BLong position in an economic futures
- CShort position in an interest rate futures
- DLong position in an interest rate futures
Information
- Description
- Quiz on Untitled, created by Beatriz Peregrina Viñolo on 24/11/2014.
- Author
- Beatriz Peregrina Viñolo
- Language
- Español
- Views
- 12
- History
- Created on 24 Nov 2014 · updated on 5 Sep 2016
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