Question 1

Use the following bond quotes to answer this question:
  
-What is the current price of a $1,000 face value Alpha Industrial bond?

Accepted Answer

A)  $986.67 
B)  $991.04 
C)  $994.02 
D)  $998.23 
E)  $1,000.00 
A)  $986.67 
B)  $991.04 
C)  $994.02 
D)  $998.23 
E)  $1,000.00

Question 2

A 3.5 percent coupon bond is currently quoted at 91.3 and has a face value of $1,000.What is the amount of each semi-annual coupon payment if you own three (3)of these bonds?

Accepted Answer

A)  $52.50 
B)  $75.00 
C)  $100.46 
D)  $110.00 
E)  $200.93 
A)  $52.50 
B)  $75.00 
C)  $100.46 
D)  $110.00 
E)  $200.93

Question 3

Use these option quotes to answer this question:
  
-The price you will pay (per underlying share)to buy the 50 call option on JL stock is:

Accepted Answer

A)  $4.75. 
B)  $4.80. 
C)  $5.00. 
D)  $5.90. 
E)  $6.00. 
A)  $4.75. 
B)  $4.80. 
C)  $5.00. 
D)  $5.90. 
E)  $6.00.

Question 4

Use the following stock quotes to answer this question:
  
-What was the previous day's closing price for Baker Co.stock?

Accepted Answer

A)  $44.70 
B)  $54.10 
C)  $68.20 
D)  $78.10 
E)  $80.40 
A)  $44.70 
B)  $54.10 
C)  $68.20 
D)  $78.10 
E)  $80.40

Question 5

Use the following soybean futures quotes:
  
-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 ________.

Accepted Answer

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

Question 6

You will earn a profit as the owner of a call option if the price of the underlying asset:

Accepted Answer

A)  decreases. 
B)  remains constant or decreases. 
C)  remains constant. 
D)  remains constant or increases. 
E)  increases. 
A)  decreases. 
B)  remains constant or decreases. 
C)  remains constant. 
D)  remains constant or increases. 
E)  increases.

Question 7

You own 300 shares of stock which you would like to have the right to sell at $40 a share.The 40 call option is quoted at $0.35 bid,$0.40 ask.The 40 put is quoted at $0.45 bid,$0.50 ask.How much will it cost you to obtain the right to sell all of your shares at $40 a share?

Accepted Answer

A)  $135 
B)  $50 
C)  $150 
D)  $105 
E)  $75 
A)  $135 
B)  $50 
C)  $150 
D)  $105 
E)  $75

Question 8

An agreement that grants the owner the right,but not the obligation,to buy or sell a specific asset at a specified price during a specified time period is called a(n)________ contract.

Accepted Answer

A)  futures 
B)  obligatory 
C)  quoted 
D)  fixed 
E)  option 
A)  futures 
B)  obligatory 
C)  quoted 
D)  fixed 
E)  option

Question 9

Use the following soybean futures quotes to answer this question.
  
-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?

Accepted Answer

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

Question 10

Preferred stock:

Accepted Answer

A)  represents the residual ownership of a corporation. 
B)  is generally issued only by new firms that are small in size. 
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 firms that are small in size. 
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.

Question 11

Harvest Fields sold ten September futures contracts on oats.Harvest Fields will:

Accepted Answer

A)  pay for the oats in September. 
B)  take delivery of the oats in September. 
C)  pay for the oats now and take delivery in September. 
D)  receive payment now and deliver in September. 
E)  both receive payment and deliver in September. 
A)  pay for the oats in September. 
B)  take delivery of the oats in September. 
C)  pay for the oats now and take delivery in September. 
D)  receive payment now and deliver in September. 
E)  both receive payment and deliver in September.

Question 12

Use the following soybean futures quotes to answer this question:
  
-What was the total price fluctuation on one September 08 soybeans contract today?

Accepted Answer

A)  $1,337.50 
B)  $1,362.50 
C)  $1,412.50 
D)  $1,460.00 
E)  $1,482.50 
A)  $1,337.50 
B)  $1,362.50 
C)  $1,412.50 
D)  $1,460.00 
E)  $1,482.50

Question 13

Use the following soybean futures quotes:
  
-You own one futures contract on gold that you purchased at a quoted price of 1,448.5.The current price quote is 1608.8.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?

Accepted Answer

A)  $160.30 
B)  $1,912.00 
C)  $8,040.00 
D)  $16,030.00 
E)  $19,120.00 
A)  $160.30 
B)  $1,912.00 
C)  $8,040.00 
D)  $16,030.00 
E)  $19,120.00

Question 14

Use the following bond quotes to answer this question:
  
-If you purchase five Zeus bonds,the cost will be ________ and the annual interest income will be ________.

Accepted Answer

A)  $5,000.00; $388.75 
B)  $5,000.00; $412.50 
C)  $5,000.00; $460.00 
D)  $5,101.50; $412.50 
E)  $5,101.50; $460.00 
A)  $5,000.00; $388.75 
B)  $5,000.00; $412.50 
C)  $5,000.00; $460.00 
D)  $5,101.50; $412.50 
E)  $5,101.50; $460.00

Question 15

Use the following bond quotes to answer this question:
  
-The Alpha Industrial bonds pay an annual interest payment equal to 5.875 percent of:

Accepted Answer

A)  $999.90. 
B)  $1,000.00. 
C)  $1,000.13. 
D)  $1,033.54. 
E)  $1,034.07. 
A)  $999.90. 
B)  $1,000.00. 
C)  $1,000.13. 
D)  $1,033.54. 
E)  $1,034.07.

Question 16

A $1,000 face value bond has a 6.85 percent semi-annual coupon and sells for $980.00.What is the current yield?

Accepted Answer

A)  6.75 percent 
B)  6.82 percent 
C)  6.89 percent 
D)  6.99 percent 
E)  6.61 percent 
A)  6.75 percent 
B)  6.82 percent 
C)  6.89 percent 
D)  6.99 percent 
E)  6.61 percent

Question 17

Preferred stock:

Accepted Answer

A)  is a type of corporate debt. 
B)  is treated like debt for tax purposes. 
C)  is listed in the liabilities section of a balance sheet. 
D)  has a stated dividend but no stated liquidation value. 
E)  is treated like equity for both tax and accounting purposes. 
A)  is a type of corporate debt. 
B)  is treated like debt for tax purposes. 
C)  is listed in the liabilities section of a balance sheet. 
D)  has a stated dividend but no stated liquidation value. 
E)  is treated like equity for both tax and accounting purposes.

Question 18

A contract that grants its buyer the right,but not the obligation,to sell an asset at a specified price is called a:

Accepted Answer

A)  futures contract. 
B)  call option. 
C)  preset contract. 
D)  put option. 
E)  primary contract. 
A)  futures contract. 
B)  call option. 
C)  preset contract. 
D)  put option. 
E)  primary contract.

Question 19

Investing in a futures contract:

Accepted Answer

A)  guarantees a sale but not a sale price. 
B)  can be profitable for both the buyer and the seller simultaneously. 
C)  guarantees the buyer a profit on the contract. 
D)  creates a gain for one party without causing a loss for the other party. 
E)  can be offset by taking an opposing position. 
A)  guarantees a sale but not a sale price. 
B)  can be profitable for both the buyer and the seller simultaneously. 
C)  guarantees the buyer a profit on the contract. 
D)  creates a gain for one party without causing a loss for the other party. 
E)  can be offset by taking an opposing position.

Question 20

You purchased four put option contracts with a strike price of $35 and a premium of $0.80.What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $31.50 a share?

Accepted Answer

A)  $13,680 
B)  $14,700 
C)  $15,740 
D)  $16,340 
E)  $16,400 
A)  $13,680 
B)  $14,700 
C)  $15,740 
D)  $16,340 
E)  $16,400

Use the following bond quotes to answer this question: -What is the current price of a $1,000 face value Alpha Industrial bond?

A 3.5 percent coupon bond is currently quoted at 91.3 and has a face value of $1,000.What is the amount of each semi-annual coupon payment if you own three (3)of these bonds?

Use these option quotes to answer this question: -The price you will pay (per underlying share)to buy the 50 call option on JL stock is:

Use the following stock quotes to answer this question: -What was the previous day's closing price for Baker Co.stock?

Use the following soybean futures quotes: -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 .

You will earn a profit as the owner of a call option if the price of the underlying asset:

You own 300 shares of stock which you would like to have the right to sell at $40 a share.The 40 call option is quoted at $0.35 bid,$0.40 ask.The 40 put is quoted at $0.45 bid,$0.50 ask.How much will it cost you to obtain the right to sell all of your shares at $40 a share?

An agreement that grants the owner the right,but not the obligation,to buy or sell a specific asset at a specified price during a specified time period is called a(n)________ contract.

Use the following soybean futures quotes to answer this question. -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?

Preferred stock:

Harvest Fields sold ten September futures contracts on oats.Harvest Fields will:

Use the following soybean futures quotes to answer this question: -What was the total price fluctuation on one September 08 soybeans contract today?

Use the following bond quotes to answer this question: -If you purchase five Zeus bonds,the cost will be and the annual interest income will be .

Use the following bond quotes to answer this question: -The Alpha Industrial bonds pay an annual interest payment equal to 5.875 percent of:

A $1,000 face value bond has a 6.85 percent semi-annual coupon and sells for $980.00.What is the current yield?

Preferred stock:

A contract that grants its buyer the right,but not the obligation,to sell an asset at a specified price is called a:

Investing in a futures contract:

You purchased four put option contracts with a strike price of $35 and a premium of $0.80.What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $31.50 a share?

A Brief History of Risk and Return

The Investment Process

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters

Exam 3: Overview of Security Types

Use the following bond quotes to answer this question: -What is the current price of a $1,000 face value Alpha Industrial bond?

A 3.5 percent coupon bond is currently quoted at 91.3 and has a face value of $1,000.What is the amount of each semi-annual coupon payment if you own three (3)of these bonds?

Use these option quotes to answer this question: -The price you will pay (per underlying share)to buy the 50 call option on JL stock is:

Use the following stock quotes to answer this question: -What was the previous day's closing price for Baker Co.stock?

Use the following soybean futures quotes: -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 ________.

You will earn a profit as the owner of a call option if the price of the underlying asset:

You own 300 shares of stock which you would like to have the right to sell at $40 a share.The 40 call option is quoted at $0.35 bid,$0.40 ask.The 40 put is quoted at $0.45 bid,$0.50 ask.How much will it cost you to obtain the right to sell all of your shares at $40 a share?

An agreement that grants the owner the right,but not the obligation,to buy or sell a specific asset at a specified price during a specified time period is called a(n)________ contract.

Use the following soybean futures quotes to answer this question. -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?

Preferred stock:

Harvest Fields sold ten September futures contracts on oats.Harvest Fields will:

Use the following soybean futures quotes to answer this question: -What was the total price fluctuation on one September 08 soybeans contract today?

Use the following bond quotes to answer this question: -If you purchase five Zeus bonds,the cost will be ________ and the annual interest income will be ________.

Use the following bond quotes to answer this question: -The Alpha Industrial bonds pay an annual interest payment equal to 5.875 percent of:

A $1,000 face value bond has a 6.85 percent semi-annual coupon and sells for $980.00.What is the current yield?

Preferred stock:

A contract that grants its buyer the right,but not the obligation,to sell an asset at a specified price is called a:

Investing in a futures contract:

You purchased four put option contracts with a strike price of $35 and a premium of $0.80.What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $31.50 a share?

A Brief History of Risk and Return

The Investment Process

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters

Use the following soybean futures quotes: -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 .

Use the following bond quotes to answer this question: -If you purchase five Zeus bonds,the cost will be and the annual interest income will be .