1. Which one of the following types of securities has the lowest priority in a bankruptcy proceeding?
Convertible bond, Senior debt, Common stock, Preferred stock, Straight bond
2. The delta of a derivatives portfolio dependent on the S&P 500 index is -2,000. The S&P 500 index is currently 1,000. Estimate what happens to the value of the portfolio when the index increases to 1,006.