GoConqr has a new look! Let us know what you think.

Sign up free

Quiz

Untitled

Beatriz Peregrina Viñolo 13 questions

Take the quiz

Questions in this quiz (13)

  1. 1The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. What is the profit or loss to a short position if the spot price of the market index rises to $920 by the expiration date?
    1. A$20 gain
    2. B$20 loss
    3. C$10 gain
    4. D$10 loss
  2. 2 The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The market index rises to $920 by the expiration date. The annual rate of interest on treasuries is 2.4% (0.2% per month). What is the difference in the payoffs between a long index investment and a long forward contract investment? (Assume monthly compounding.)
    1. A$10.84
    2. B$24.59
    3. C$26.40
    4. D$43.20
  3. 3The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The annual rate of interest on treasuries is 2.4% (0.2% per month). What annualized rate of interest makes the net payoff zero? (Assume monthly compounding.)
    1. A4.8%
    2. B8.5%
    3. C11.2%
    4. D13.2%
  4. 4The spot price of the market index is $900. After 3 months, the market index is priced at $920. An investor has a long call option on the index at a strike price of $930. After 3 months, what is the investor's profit or loss?
    1. A$10 loss
    2. B$0
    3. C$10 gain
    4. D$20 gain
  5. 5The spot price of the market index is $900. After 3 months the market index is priced at $920. The annual rate of interest on treasuries is 2.4% (0.2% per month). The premium on the long put, with an exercise price of $930, is $8.00. What is the profit or loss at expiration for the long put?
    1. A $2.00 gain
    2. B$2.00 loss
    3. C$1.95 gain
    4. D$1.95 loss
  6. 6The spot price of the market index is $900. After 3 months the market index is priced at $920. The annual rate of interest on treasuries is 2.4% (0.2% per month). The premium on the long put, with an exercise price of $930, is $8.00. At what index price does a long put investor have the same payoff as a short index investor? Assume the short position has a breakeven price of $930.
    1. A$921.90
    2. B$930.00
    3. C$938.05
    4. D$940.00
  7. 7All of the positions listed will benefit from a price decline, except:
    1. AShort put
    2. BLong put
    3. CShort call
    4. DShort stock
  8. 8The spot price of the market index is $900. The annual rate of interest on treasuries is 2.4% (0.2% per month). After 3 months the market index is priced at $920. An investor has a long call option on the index at a strike price of $930. What profit or loss will the writer of the call option earn if the option premium is $2.00?
    1. A $2.00 gain
    2. B$2.00 loss
    3. C$2.01 gain
    4. D$2.01 loss
  9. 9The spot price of the market index is $900. After 3 months the market index is priced at $915. The annual rate of interest on treasuries is 2.4% (0.2% per month). The premium on the long put, with an exercise price of $930, is $8.00. Calculate the profit or loss to the short put position if the final index price is $915.
    1. A$15.00 gain
    2. B$15.00 loss
    3. C$6.95 gain
    4. D$6.95 loss
  10. 10 If your homeowner's insurance premium is $1,000 and your deductible is $2000, what could be considered the strike price of the policy if the home has a value of $120,000?
    1. A$118,000
    2. B$120,000
    3. C$117,000
    4. D $122,000

Information

Description
Quiz on Untitled, created by Beatriz Peregrina Viñolo on 24/11/2014.
Language
Español
Views
10
Rating
No ratings yet
Rate this quiz
Rate this quiz

Feedback

What is it about?

What do you think of the new look?

How do you like it?