Use the following soybean futures quotes to answer this question. Soybeans: 5,000 bushels, cents and 1/8ths of a cent per bushel $\begin{array}{ccccc} \operatorname{Exp} & \text { Last } & \text { Net Chg } & \text { Open } & \text { High } & \text { Low }& \text { Settle} \\ \text { 08 Sep } & 1314^{\prime} 0& -3^{\prime} 4 & 1340^{\prime} 2 & 1340^{\prime} 6 & 1313^{\prime} 4 &1314^{\prime}0\\ \text { 08 Nov } & 1285^{\prime }2 & +4{ }^{\prime}2 & 1306^{\prime}0 & 1312 ^{\prime}2&1280 ^{\prime}0&1285^{\prime}2 \\ \end{array}$ - You purchased four November 08 futures contracts on soybeans when they first became available this morning. Your investment has been worth as little as ________ and as much as ________.

A) $255,350; $265,500 B) $255,350; $265,020 C) $257,440; $265,500 D) $257,440; $265,020 E) $257,440; $265,520 A) $255,350; $265,500 B) $255,350; $265,020 C) $257,440; $265,500 D) $257,440; $265,020 E) $257,440; $265,520 A

A) represents the residual ownership of a corporation. B) is generally issued only by new, small firms. C) has a fixed maturity date similar to a bond. D) dividends can be skipped at the discretion of the company president. E) may or may not be cumulative. A) represents the residual ownership of a corporation. B) is generally issued only by new, small firms. C) has a fixed maturity date similar to a bond. D) dividends can be skipped at the discretion of the company president. E) may or may not be cumulative.

Use the following soybean futures quotes to answer this question. Soybeans: 5,000 bushels, cents and 1/8ths of a cent per bushel $\begin{array}{ccccc} \operatorname{Exp} & \text { Last } & \text { Net Chg } & \text { Open } & \text { High } & \text { Low }& \text { Settle} \\ \text { 08 Sep } & 1314^{\prime}0 & -3^{\prime} 4 & 1340^{\prime} 2 & 1340^{\prime} 6 & 1313^{\prime} 4 &1314^{\prime}0\\ \text { 08 Nov } & 1285^{\prime }2 & +4{ }^{\prime}2 & 1306^{\prime}0 & 1312 ^{\prime}2&1280 ^{\prime}0&1285^{\prime}2 \\ \end{array}$ - Last week, you purchased four November 08 soybean futures contracts when the price quote was 1300?6. What is your current profit or loss on this investment?

A) -$3,100.00 B) -$2,625.00 C) -$31.00 D) $987.50 E) $3,350.00 A) -$3,100.00 B) -$2,625.00 C) -$31.00 D) $987.50 E) $3,350.00

Use the following bond quotes to answer this question: $\begin{array}{cccccccc} \text { Company}&\text { Coupon}&\text { Maturity }&\text {High}&\text { Low }&\text {Last }&\text {Change}&\text { Yield }\\ \text {Falliru } & 7.60 & \text { Nov } 2012 & 100.05 & 99.68 & 99.89 & .02 & ? \\ \text { Co. } & & & & & & & \\ \text { Zeus } & 8.25 & \text { Apr } 2016 & 102.41 & 101.87 & 102.03 & -.10 & ? \end{array}$ - If you purchase eight Talliru bonds, the cost will be ________ and the annual interest income will be ________.

A) $8,000.00; $388.75 B) $8,000.00; $412.50 C) $8,000.00; $460.00 D) $7,991.20; $608.00 E) $7,991.20; $998.9 A) $8,000.00; $388.75 B) $8,000.00; $412.50 C) $8,000.00; $460.00 D) $7,991.20; $608.00 E) $7,991.20; $998.9

Use the following stock quotes to answer this question: $\text { 52-WEEK }$ $\begin{array}{lccccc} \text{ Company} & \text{ Volume} & \text{ Close} & \text{ Chg }& \text{ High }& \text{ Low } \\ \text{ Aldridge, Inc.} & 32,653,080 & 34.50 & -.20 & 41.60 & 33.90 \\ \text{ Baker Co.} & 11,508,900 & 78.10 & -2.30 & 82.30 & 74.60 \\ \text{ Chelsea, Inc. }& 51.873,450 & 48.20 & 4.10 & 48.60 & 29.40 \end{array}$ - Baker Co. has 198,000 shares of stock outstanding and a PE ratio of 22. What was the net income for the most recent four quarters?

A) $590,089 B) $678,003 C) $702,900 D) $1,306,900 E) $1,405,800 A) $590,089 B) $678,003 C) $702,900 D) $1,306,900 E) $1,405,800

Exam 3: Overview of Security Tips

Use the following soybean futures quotes to answer this question. Soybeans: 5,000 bushels, cents and 1/8ths of a cent per bushel Exp Last Net Chg Open High Low Settle 08 Sep 1310 -4 1342 1346 1314 1310 08 Nov 1282 +42 1300 1312 1280 1282 - You purchased four November 08 futures contracts on soybeans when they first became available this morning. Your investment has been worth as little as and as much as .

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

A

An American call option grants the holder the right to:

Free

(Multiple Choice)

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(35)

Question 2

Correct Answer:

Verified

E

You own one futures contract on gold that you purchased at a quoted price of 1,448.5. The current price quote is 1,405.5. The contract size is 100 ounces and the quotes are expressed in dollars and cents per ounce. What is your current profit or loss on this investment?

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

C

Which one of the following sentences is correct concerning fixed-income securities?

(Multiple Choice)

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Question 4

Preferred stock:

(Multiple Choice)

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Question 5

If Jamie purchases a corporate bond for $960, she is said to have bought it at:

(Multiple Choice)

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Question 6

Which one of the following is classified as a fixed-income security?

(Multiple Choice)

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Question 7

You own thirteen 7.0 percent coupon bonds with a total maturity value of $13,000. How much will you receive every six months as an interest payment?

(Multiple Choice)

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Question 8

A 7 percent coupon bond has a face value of $1,000 and pays interest annually. The current yield is 7.3 percent. What is the current price of this bond?

(Multiple Choice)

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Question 9

You purchased four call option contracts with a strike price of $24.00 and a premium of $1.30. At expiration, the stock was selling for $25.50 a share. What is the total amount it cost you to acquire your shares?

(Multiple Choice)

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Question 10

If you want the right, but not the obligation, to buy a stock at a specified price you should:

(Multiple Choice)

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Question 11

Use the following soybean futures quotes to answer this question. Soybeans: 5,000 bushels, cents and 1/8ths of a cent per bushel Exp Last Net Chg Open High Low Settle 08 Sep 1310 -4 1342 1346 1314 1310 08 Nov 1282 +42 1300 1312 1280 1282 - Last week, you purchased four November 08 soybean futures contracts when the price quote was 1300?6. What is your current profit or loss on this investment?

(Multiple Choice)

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(39)

Question 12

Great Lakes Farm agreed this morning to sell General Mills 25,000 bushels of wheat six months from now at a price per bushel of $9.75. This is an example of a:

(Multiple Choice)

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(50)

Question 13

You would like to lock in the selling price on 50,000 bushels of wheat, which you plan to harvest and deliver to the market in September. The September futures price quote is currently 899΄4. If you write September futures contracts on your wheat, you will be guaranteed a total price of ________ for your crop. Each contract is quoted in cents and 1/8ths of a cent per bushel with a contract size of 5,000 bushels.

(Multiple Choice)

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Question 14

Assume a semi-annual coupon bond matures in 3 years, has a face value of $1,000, a current market price of $1,089, and a 5 percent coupon. Which one of the following statements is correct concerning this bond?

(Multiple Choice)

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Question 15

Use the following bond quotes to answer this question: Company Coupon Maturity High Low Last Change Yield Falliru 7.60 Nov 2012 100.05 99.68 99.89 .02 ? Co. Zeus 8.25 Apr 2016 102.41 101.87 102.03 -.10 ? - If you purchase eight Talliru bonds, the cost will be and the annual interest income will be .

(Multiple Choice)

4.9/5

(37)

Question 16

Use the following stock quotes to answer this question: $\text { 52-WEEK }$ Company Volume Close Chg High Low Aldridge, Inc. 32,653,080 34.50 -.20 41.60 33.90 Baker Co. 11,508,900 78.10 -2.30 82.30 74.60 Chelsea, Inc. 51.873,450 48.20 4.10 48.60 29.40 - Baker Co. has 198,000 shares of stock outstanding and a PE ratio of 22. What was the net income for the most recent four quarters?

(Multiple Choice)

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Question 17

The amount of money per share that will be received when a put option on stock is exercised is called the ________ price.

(Multiple Choice)

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Question 18

You purchased four call option contracts with a strike price of $40 and an option premium of $1.25. You closed your contract on the expiration date when the stock was selling for $42.50 a share. What is your total profit or loss on your option position?

(Multiple Choice)

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(38)

Question 19

The annual interest payment divided by the current price of a bond is called the:

(Multiple Choice)

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Question 20

An American call option grants the holder the right to:

You own one futures contract on gold that you purchased at a quoted price of 1,448.5. The current price quote is 1,405.5. The contract size is 100 ounces and the quotes are expressed in dollars and cents per ounce. What is your current profit or loss on this investment?

Which one of the following sentences is correct concerning fixed-income securities?

Preferred stock:

If Jamie purchases a corporate bond for $960, she is said to have bought it at:

Which one of the following is classified as a fixed-income security?

You own thirteen 7.0 percent coupon bonds with a total maturity value of $13,000. How much will you receive every six months as an interest payment?

A 7 percent coupon bond has a face value of $1,000 and pays interest annually. The current yield is 7.3 percent. What is the current price of this bond?

You purchased four call option contracts with a strike price of $24.00 and a premium of $1.30. At expiration, the stock was selling for $25.50 a share. What is the total amount it cost you to acquire your shares?

If you want the right, but not the obligation, to buy a stock at a specified price you should:

Great Lakes Farm agreed this morning to sell General Mills 25,000 bushels of wheat six months from now at a price per bushel of $9.75. This is an example of a:

Assume a semi-annual coupon bond matures in 3 years, has a face value of $1,000, a current market price of $1,089, and a 5 percent coupon. Which one of the following statements is correct concerning this bond?

Use the following bond quotes to answer this question: Company Coupon Maturity High Low Last Change Yield Falliru 7.60 Nov 2012 100.05 99.68 99.89 .02 ? Co. Zeus 8.25 Apr 2016 102.41 101.87 102.03 -.10 ? - If you purchase eight Talliru bonds, the cost will be and the annual interest income will be .

The amount of money per share that will be received when a put option on stock is exercised is called the ________ price.

You purchased four call option contracts with a strike price of $40 and an option premium of $1.25. You closed your contract on the expiration date when the stock was selling for $42.50 a share. What is your total profit or loss on your option position?

The annual interest payment divided by the current price of a bond is called the:

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