Exam 3: Overview of Security Types

Use the following soybean futures quotes: -You purchased five August 13 futures contracts on soybeans at a price quote of 1056′6.Each contract is for 5,000 bushels with the price quoted in cents and 1/8 ths of a cent per bushel.Assume the contract price is 1061′4 when you close out your contract six weeks from now.What will be your total profit or loss on this investment?

You purchased eight put option contracts with a strike price of $30 and a premium of $1.10.What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $26.50 a share?

You bought five call option contracts with a strike price of $47.50 and an option premium of $1.20.At expiration,the stock was selling for $51.30 a share and you exercised your option.What is your total cost basis in the acquired shares?

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

A 7 percent coupon bond has a face value of $1,000 and pays interest annually.The current yield is 6.8 percent.What is the current price of this bond?

Use the following stock quotes to answer this question: -A pension fund purchased 20 round lots of Chelsea Company stock at the closing price of the day yesterday.What was the cost of that purchase?

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

A security originally sold by a business or government to raise money is called a(n):

Use these option quotes to answer this question: -You want to sell four call option contracts on ZZ Industries stock at a strike price of $32.50 a share.How much will you receive in option premiums if you place this order today?

Use these option quotes to answer this question: -What was the prior day's closing price on the 50 call option on JL stock?

Which one of the following is the best definition of a money market instrument?

A call option is an agreement that:

Use the following wheat futures quotes to answer this question. -What price would you have paid today per bushel for the Mar 08 wheat futures contract if you bought the contract at the final price of the day?

Use the following wheat futures quotes to answer this question. -By how much did today's settlement price per bushel for the Mar 08 wheat futures contract increase over the prior day's settlement price?