Exam 2: Asset Classes and Financial Instruments

Which of the following provides an important source of funding for the Australian Commonwealth Government?

Which of the following does not approximate the performance of a buy and hold portfolio strategy?

If you thought prices of share would be rising over the next few months you may wish to ________ on the share.

________ is not a money market instrument.

The most actively traded money market security is

Which one of the following provides the best example of securitisation?

What is the tax exempt equivalent yield on a 9% bond yield given a marginal tax rate of 28%?

A ________ gives its holder the right to sell an asset for a specified exercise price on or before a specified expiration date.

Preferred share is like long-term debt in that ________.

Treasury notes are offered for sale generally on a ________ basis.

A ________ gives its holder the right to buy an asset for a specified exercise price on or before a specified expiration date.

Which of the following is not considered a money market investment?

________ is considered to be an emerging market country.

June call and put options on King Books Inc are available with exercise prices of $30, $35 and $40. Among the different exercise prices, the call option with the ________ exercise price and the put option with the ________ exercise price will have the greatest value.

Which of the following are true statements about T-notes? I. T-notes are typically issued in denominations of $1 000 000 II. Income earned on T-notes is exempt from all taxes III. T-notes are issued at a discount

A tax free municipal bond provides a yield of 3.2%. What is the equivalent taxable yield on the bond given a 35% tax bracket?

Eurodollars are ________.

________ voting of common share gives minority shareholders the most representation on the board of directors.

An investor in a T-note earns interest by ________.