Exam 3: Overview of Security Types

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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Question 21

Assume a semi-annual coupon bond matures in 3 years,has a face value of $1,000,a current market price of $989,and a 5 percent coupon.Which one of the following statements is correct concerning this bond?

(Multiple Choice)

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Question 22

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 _.

(Multiple Choice)

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Question 23

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.

(Multiple Choice)

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Question 24

A fixed-income security is defined as:

(Multiple Choice)

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Question 25

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?

(Multiple Choice)

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Question 26

What is today's closing price per share of Buy Rite stock?

(Multiple Choice)

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Question 27

Which one of the following represents a residual ownership interest in the issuer?

(Multiple Choice)

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Question 28

You purchased 600 shares of SLG,Inc.stock at a price of $41.20 a share.You then purchased put options on your shares with a strike price of $45.00 and an option premium of $1.10.At expiration,the stock was selling for $48.30 a share.You sold your shares on the option expiration date.What is your net profit or loss your transactions related to SLG,Inc.stock?

(Multiple Choice)

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Question 29

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

(Multiple Choice)

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Question 30

The 47.50 put on a stock is trading at 1.32 bid and 1.37 ask.To buy one option contract,you must pay _____ at the time the contract is purchased.

(Multiple Choice)

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Question 31

Uptown Jewelers purchased a futures contract on 200 ounces of gold to be exchanged 3-months from now.As the contract holder,Uptown Jewelers:

(Multiple Choice)

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Question 32

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?

(Multiple Choice)

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(37)

Question 33

You purchased six put option contracts with a strike price of $45 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 $42.90 a share?

(Multiple Choice)

4.8/5

(37)

Question 34

Which of the following are generally included in a standardized futures contract? I.delivery date II.quantity to be delivered III.specific item to be delivered IV.delivery location

(Multiple Choice)

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(34)

Question 35

Julie was lucky enough to purchase two September 08 futures contracts on soybeans when the contracts were at the lowest price of the day.What is Julie's total profit or loss as of the end of the day?

(Multiple Choice)

4.9/5

(36)

Question 36

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

(Multiple Choice)

4.8/5

(38)

Question 37

Explain what a put option is and describe the circumstances under which you would be willing to sell a put.

(Essay)

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(34)

Question 38

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?

(Multiple Choice)

4.9/5

(40)

Question 39

Baker Company has 136,000 shares of stock outstanding and a PE ratio of 18.What was the net income for the most recent four quarters?

(Multiple Choice)

4.8/5

(33)

Question 40

Showing 21 - 40 of 94

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?

Assume a semi-annual coupon bond matures in 3 years,has a face value of $1,000,a current market price of $989,and a 5 percent coupon.Which one of the following statements is correct concerning this bond?

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 _.

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.

A fixed-income security is defined as:

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?

What is today's closing price per share of Buy Rite stock?

Which one of the following represents a residual ownership interest in the issuer?

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

The 47.50 put on a stock is trading at 1.32 bid and 1.37 ask.To buy one option contract,you must pay _____ at the time the contract is purchased.

Uptown Jewelers purchased a futures contract on 200 ounces of gold to be exchanged 3-months from now.As the contract holder,Uptown Jewelers:

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?

You purchased six put option contracts with a strike price of $45 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 $42.90 a share?

Which of the following are generally included in a standardized futures contract? I.delivery date II.quantity to be delivered III.specific item to be delivered IV.delivery location

Julie was lucky enough to purchase two September 08 futures contracts on soybeans when the contracts were at the lowest price of the day.What is Julie's total profit or loss as of the end of the day?

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

Explain what a put option is and describe the circumstances under which you would be willing to sell a put.

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?

Baker Company has 136,000 shares of stock outstanding and a PE ratio of 18.What was the net income for the most recent four quarters?

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

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?

Assume a semi-annual coupon bond matures in 3 years,has a face value of $1,000,a current market price of $989,and a 5 percent coupon.Which one of the following statements is correct concerning this bond?

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 _____.

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.

A fixed-income security is defined as:

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?

What is today's closing price per share of Buy Rite stock?

Which one of the following represents a residual ownership interest in the issuer?

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

The 47.50 put on a stock is trading at 1.32 bid and 1.37 ask.To buy one option contract,you must pay _____ at the time the contract is purchased.

Uptown Jewelers purchased a futures contract on 200 ounces of gold to be exchanged 3-months from now.As the contract holder,Uptown Jewelers:

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?

You purchased six put option contracts with a strike price of $45 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 $42.90 a share?

Which of the following are generally included in a standardized futures contract? I.delivery date II.quantity to be delivered III.specific item to be delivered IV.delivery location

Julie was lucky enough to purchase two September 08 futures contracts on soybeans when the contracts were at the lowest price of the day.What is Julie's total profit or loss as of the end of the day?

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

Explain what a put option is and describe the circumstances under which you would be willing to sell a put.

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?

Baker Company has 136,000 shares of stock outstanding and a PE ratio of 18.What was the net income for the most recent four quarters?

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

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 _.