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multiple choice1if a stockrsquos variance of return increases and everything else remains constant the price of a call
multiple choice1which of the following is most equivalent to writing a straddleabuy stock write two callsbbuy stock buy
multiple choice1if a call option with a striking price of 50 is purchased for 3 frac12 the maximum loss is a3 frac12b46
multiple choice1which of the following strategies most closely resembles the outright purchase of stockabuy a call
1a 5 million stock portfolio has a beta of 110 at a time when the oex index stands at 44000 you write 10 jun oex 450
1 nbsplisted below are four basic option positions nbsptwo of these are generally bearish and two are bullish nbspput
truefalse1 nbspa call option gives you the right to buy2 nbspa put option is a promise to sell3 nbspoptions can be
multiple choice1 option striking prices are normally ata 2 intervalsb 5 intervalsc 7 intervalsd 10 intervals2 an option
multiple choice1 a person who buys an option may do any of the following excepta extend itb exercise itc sell itd allow
multiple choice1 an observation whose value changes isa a random variableb discretec continuousd a statistic2 a
multiple choice1 the orange county california bankruptcy was largely due to the treasurerrsquos use ofa derivativesb
bob technologies is considering whether or not to refund a 70 million 10 coupon 30-year bond issue that was sold 5
wong industries has hired the investment banking firm of friday kruse amp delatte fkd to help it go public wong and
part b escalating steel costs have made cable corporations cable rewiring machine obsolete from an economic point of
escalating steel costs have made cable corporations cable rewiring machine obsolete from an economic point of view
harold enterprises can issue floating-rate debt at libor 1 or fixed-rate debt at 12 john manufacturing can issue
calvert ltd is interested in acquiring jones industries jones has 2 million shares outstanding and a target capital
5 the common stock of company xyz is currently trading at a price of 42 both a put and a call option are available
you strongly believe that the price of breener inc stock will rise substantially from its current level of 137 and you
clark faucet company background by 1999 clark faucet company had grown into the third largest supplier of faucets for
your broker recommends that you purchase good mills at 30 the stock pays a 320 annual dividend which like its per
multiple choice1the swap fixed rate is also called the swap apricebvaluectenordnotional value2tenor refers toathe
1you remember that the notion of swapcapfloor parity involves creating a zero cost collar such that the cap premium
multiple choice1 you can think of a swap as all of the following exceptaa pair of stocksba pair of bondsca series of
1a speculator buys a july corn futures contract at 218bu and simultaneously writes a july 220 corn futures call option