$\begin{array}{|l|r|r|r|r|r|rr|r} \hline & & & & & & {\quad\quad\text { Lifetime }} && \text { Open } \\ \hline & \text { Open } & \text { High } & \text { Low } & \text { Settle } & \text { Chg } & \text { High } & \text { Low } & \text { Int } \\ \hline \text { Dee } & 107.97 & 108.97 & 107.88 & 108.72 & 0.72 & 121.56 & 102.44 & 432,512 \\ \hline \text { Mar } & 106.91 & 107.50 & 106.47 & 107.31 & 0.81 & 116.72 & 101.16 & 19,531 \\ \hline \end{array}$ -You sold 15 of the December Treasury bond futures at the opening price on this day and closed your position at the closing price. What was the profit on this transaction?

A) $9,875 B) - $11,250 C) $13,140 D) - $9,875 E) $11,250 A) $9,875 B) - $11,250 C) $13,140 D) - $9,875 E) $11,250

A) A type of corporate debt B) Treated like debt for tax purpose C) Treated like equity for both tax and accounting purposes D) Valued based on the net worth of the issuer during the liquidation process E) Listed in the liabilities section of a balance sheet A) A type of corporate debt B) Treated like debt for tax purpose C) Treated like equity for both tax and accounting purposes D) Valued based on the net worth of the issuer during the liquidation process E) Listed in the liabilities section of a balance sheet

Gold (CMX) 100 troy oz.; $ per troy oz. $\begin{array}{|l|r|r|r|r|r|r|r|r|} \hline & \text { Open } & \text { High } & \text { Low } & \text { Settle } & \text { \$Chg } & \text { Sea. Hi } & \text { Sea. Lo } & \text { Op. Int. } \\ \hline \text { December } & 384.00 & 389.50 & 382.20 & 384.60 & 0.20 & 394.80 & 280.00 & 183.612 \\ \hline \text { April } & 385.00 & 391.00 & 385.00 & 387.10 & 0.15 & 395.70 & 287.00 & 10,167 \\ \hline \end{array}$ -A corn futures contract was purchased for $1.50 per bushel on July 1. Each contract is for 5,000 bushels. The contract is sold for $1.60 per bushel on October 1. What is the holding-period return?

A) 6.25% B) 6.67% C) 5.75% D) 7.25% E) 7.00% A) 6.25% B) 6.67% C) 5.75% D) 7.25% E) 7.00%

$\begin{array}{|r|r|c|c|r|r|r|r|r|r} \hline \begin{array}{r} 52-\text { Week } \\ \text { High } \end{array} & \begin{array}{r} 52-\text { Week } \\ \text { Low } \end{array} & \text { Stock } & \text { SYM } & \text { DIV } & \text { CLOSE } & \begin{array}{r} \text { Net } \\ \text { CHG } \end{array} & \begin{array}{r} \text { VOL. } \\ 100 \mathrm{~s} \end{array} & \begin{array}{r} \text { YLD } \\ \% \end{array} & \begin{array}{r} \text { P/E } \\ \text { Ratio } \end{array} \\ \hline 34.17 & 24.10 & \text { Laughing } & \text { LOL } & 2.34 & 32.68 & 0.03 & 214 & ? & 19 \\ \hline 82.63 & 61.18 & \text { Distracted } & \text { BRB } & 0.80 & ? & 0.12 & 719 & 2.1 & 24 \\ \hline 52.63 & 26.02 & \text { Hoppy } & \text { BZZR } & 0.10 & 48.16 & -0.41 & 984 & ? & 36 \\ \hline \end{array}$ -What is the latest earnings per share value for Hoppy's stock?

A) $1.34 B) $1.58 C) $1.73 D) $4.39 E) $4.82 A) $1.34 B) $1.58 C) $1.73 D) $4.39 E) $4.82

$\begin{array}{|r|r|c|c|r|r|r|r|r|r} \hline \begin{array}{r} 52-\text { Week } \\ \text { High } \end{array} & \begin{array}{r} 52-\text { Week } \\ \text { Low } \end{array} & \text { Stock } & \text { SYM } & \text { DIV } & \text { CLOSE } & \begin{array}{r} \text { Net } \\ \text { CHG } \end{array} & \begin{array}{r} \text { VOL. } \\ 100 \mathrm{~s} \end{array} & \begin{array}{r} \text { YLD } \\ \% \end{array} & \begin{array}{r} \text { P/E } \\ \text { Ratio } \end{array} \\ \hline 34.17 & 24.10 & \text { Laughing } & \text { LOL } & 2.34 & 32.68 & 0.03 & 214 & ? & 19 \\ \hline 82.63 & 61.18 & \text { Distracted } & \text { BRB } & 0.80 & ? & 0.12 & 719 & 2.1 & 24 \\ \hline 52.63 & 26.02 & \text { Hoppy } & \text { BZZR } & 0.10 & 48.16 & -0.41 & 984 & ? & 36 \\ \hline \end{array}$ -What was the closing price on the prior trading day for Distracted's stock?

A) $37.98 B) $38.10 C) $38.16 D) $38.22 E) $38.32 A) $37.98 B) $38.10 C) $38.16 D) $38.22 E) $38.32

$\begin{array}{|l|r|r|r|r|r|rr|r} \hline & & & & & & {\quad\quad\text { Lifetime }} && \text { Open } \\ \hline & \text { Open } & \text { High } & \text { Low } & \text { Settle } & \text { Chg } & \text { High } & \text { Low } & \text { Int } \\ \hline \text { Dee } & 107.97 & 108.97 & 107.88 & 108.72 & 0.72 & 121.56 & 102.44 & 432,512 \\ \hline \text { Mar } & 106.91 & 107.50 & 106.47 & 107.31 & 0.81 & 116.72 & 101.16 & 19,531 \\ \hline \end{array}$ -What was the highest dollar value of the March Treasury bond futures contract to this date?

A) $116.72 B) $1,167.19 C) $11,671.88 D) $116,720.00 E) $1,167,187.50 A) $116.72 B) $1,167.19 C) $11,671.88 D) $116,720.00 E) $1,167,187.50

A) Can only be placed on intangible assets B) Are primary financial assets C) Are more risky than forward contracts D) Are tailor made E) Can be resold A) Can only be placed on intangible assets B) Are primary financial assets C) Are more risky than forward contracts D) Are tailor made E) Can be resold

AA Company: Price 35.20 Calls: $\begin{array}{|r|r|r|r|r|r|r|r|} \hline \text { Strike } & \text { Symbol } & \text { Last } & \text { Change } & \text { Bid } & \text { Ask } & \text { Volume } & \text { Open Int. } \\ \hline 27.50 & \text { AAEY } & 7.70 & +0.28 & 7.70 & 7.80 & 2 & 289 \\ \hline 30.00 & \text { AAEF } & 5.20 & +0.36 & 5.20 & 5.30 & 453 & 1,306 \\ \hline 32.50 & \text { AAEZ } & 2.80 & +0.30 & 2.75 & 2.80 & 520 & 3,609 \\ \hline 35.00 & \text { AAEG } & 0.45 & +0.20 & 0.40 & 0.50 & 656 & 5,372 \\ \hline \end{array}$ Puts: $\begin{array}{|r|l|r|r|r|r|r|r|} \hline \text { Strike } & \text { Symbol } & \text { Last } & \text { Change } & \text { Bid } & \text { Ask } & \text { Volume } & \text { Open Int. } \\ \hline 35.00 & \text { AAQG } & 0.30 & -0.20 & 0.25 & 0.30 & 19 & 1.607 \\ \hline 37.50 & \mathrm{AAQS} & 2.35 & -1.30 & 2.30 & 2.40 & 11 & 114 \\ \hline 40.00 & \mathrm{AAQH} & 4.80 & -0.10 & 4.80 & 4.90 & 2 & 13 \\ \hline \end{array}$ -You want the right to sell 700 shares of AA stock at a price of $35 a share. How much will it cost you to establish this option position?

A) $175 B) $210 C) $245 D) $280 E) $350 A) $175 B) $210 C) $245 D) $280 E) $350

Exam 4: Overview of Security Types

A(n) _______ contract is an agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specified price for a specified time period.

(Multiple Choice)

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Question 21

A spread of 75 basis points is equal to ____ percent.

(Multiple Choice)

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Question 22

On what basis are money market securities distinguished from fixed-income securities?

(Multiple Choice)

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Question 23

Why would you purchase a put option and what is the maximum loss you can incur should you do so?

(Essay)

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Question 24

Which of the following is a difference between an American and a European option?

(Multiple Choice)

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Question 25

Suppose you purchased 2 put option contracts with a strike price of $37.50 and a premium of $0.40. What is your net amount you will receive for your shares if you exercise this contract?

(Multiple Choice)

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Question 26

You believe a certain stock will increase in value. Which of the following option strategies will generate a profit for you? I. Buy a put. II. Buy a call. III. Sell a put. IV. Sell a call.

(Multiple Choice)

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Question 27

What are the major differences between writing a call option, buying a call option, writing a put option and buying a put option?

(Essay)

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Question 28

Which of the following represents ownership of a corporation?

(Multiple Choice)

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Question 29

Lifetime Open Open High Low Settle Chg High Low Int Dee 107.97 108.97 107.88 108.72 0.72 121.56 102.44 432,512 Mar 106.91 107.50 106.47 107.31 0.81 116.72 101.16 19,531 -You sold 15 of the December Treasury bond futures at the opening price on this day and closed your position at the closing price. What was the profit on this transaction?

(Multiple Choice)

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Question 30

Preferred stock is

(Multiple Choice)

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Question 31

Why is preferred stock often referred to as a "hybrid" security?

(Multiple Choice)

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Question 32

Gold (CMX) 100 troy oz.; $ per troy oz. Open High Low Settle \Chg Sea. Hi Sea. Lo Op. Int. December 384.00 389.50 382.20 384.60 0.20 394.80 280.00 183.612 April 385.00 391.00 385.00 387.10 0.15 395.70 287.00 10,167 -A corn futures contract was purchased for $1.50 per bushel on July 1. Each contract is for 5,000 bushels. The contract is sold for $1.60 per bushel on October 1. What is the holding-period return?

(Multiple Choice)

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Question 33

52- Week High 52- Week Low Stock SYM DIV CLOSE Net CHG VOL. 100 YLD \% P/E Ratio 34.17 24.10 Laughing LOL 2.34 32.68 0.03 214 ? 19 82.63 61.18 Distracted BRB 0.80 ? 0.12 719 2.1 24 52.63 26.02 Hoppy BZZR 0.10 48.16 -0.41 984 ? 36 -What is the latest earnings per share value for Hoppy's stock?

(Multiple Choice)

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Question 34

52- Week High 52- Week Low Stock SYM DIV CLOSE Net CHG VOL. 100 YLD \% P/E Ratio 34.17 24.10 Laughing LOL 2.34 32.68 0.03 214 ? 19 82.63 61.18 Distracted BRB 0.80 ? 0.12 719 2.1 24 52.63 26.02 Hoppy BZZR 0.10 48.16 -0.41 984 ? 36 -What was the closing price on the prior trading day for Distracted's stock?

(Multiple Choice)

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Question 35

Using an option contract to buy or sell the underlying asset is called ________ the option.

(Multiple Choice)

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Question 36

Lifetime Open Open High Low Settle Chg High Low Int Dee 107.97 108.97 107.88 108.72 0.72 121.56 102.44 432,512 Mar 106.91 107.50 106.47 107.31 0.81 116.72 101.16 19,531 -What was the highest dollar value of the March Treasury bond futures contract to this date?

(Multiple Choice)

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Question 37

Futures contracts

(Multiple Choice)

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Question 38

AA Company: Price 35.20 Calls: Strike Symbol Last Change Bid Ask Volume Open Int. 27.50 AAEY 7.70 +0.28 7.70 7.80 2 289 30.00 AAEF 5.20 +0.36 5.20 5.30 453 1,306 32.50 AAEZ 2.80 +0.30 2.75 2.80 520 3,609 35.00 AAEG 0.45 +0.20 0.40 0.50 656 5,372 Puts: Strike Symbol Last Change Bid Ask Volume Open Int. 35.00 AAQG 0.30 -0.20 0.25 0.30 19 1.607 37.50 2.35 -1.30 2.30 2.40 11 114 40.00 4.80 -0.10 4.80 4.90 2 13 -You want the right to sell 700 shares of AA stock at a price of $35 a share. How much will it cost you to establish this option position?

(Multiple Choice)

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Question 39

\ 5.67 \ 9.99 \ 10.11 \ 2.56 \ 5.33 -You are told that the prices in the table above are from yesterday's price quote for LOL. They represent the daily high, daily low, close, 52 week high and 52 week low but are mixed-up and out of order. Which one MUST be the 52 week low price?

(Multiple Choice)

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Question 40

A(n) _______ contract is an agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specified price for a specified time period.

A spread of 75 basis points is equal to ____ percent.

On what basis are money market securities distinguished from fixed-income securities?

Why would you purchase a put option and what is the maximum loss you can incur should you do so?

Which of the following is a difference between an American and a European option?

Suppose you purchased 2 put option contracts with a strike price of $37.50 and a premium of $0.40. What is your net amount you will receive for your shares if you exercise this contract?

You believe a certain stock will increase in value. Which of the following option strategies will generate a profit for you? I. Buy a put. II. Buy a call. III. Sell a put. IV. Sell a call.

What are the major differences between writing a call option, buying a call option, writing a put option and buying a put option?

Which of the following represents ownership of a corporation?

Preferred stock is

Why is preferred stock often referred to as a "hybrid" security?

52- Week High 52- Week Low Stock SYM DIV CLOSE Net CHG VOL. 100 YLD \% P/E Ratio 34.17 24.10 Laughing LOL 2.34 32.68 0.03 214 ? 19 82.63 61.18 Distracted BRB 0.80 ? 0.12 719 2.1 24 52.63 26.02 Hoppy BZZR 0.10 48.16 -0.41 984 ? 36 -What is the latest earnings per share value for Hoppy's stock?

Using an option contract to buy or sell the underlying asset is called ________ the option.

Lifetime Open Open High Low Settle Chg High Low Int Dee 107.97 108.97 107.88 108.72 0.72 121.56 102.44 432,512 Mar 106.91 107.50 106.47 107.31 0.81 116.72 101.16 19,531 -What was the highest dollar value of the March Treasury bond futures contract to this date?

Futures contracts

\ 5.67 \ 9.99 \ 10.11 \ 2.56 \ 5.33 -You are told that the prices in the table above are from yesterday's price quote for LOL. They represent the daily high, daily low, close, 52 week high and 52 week low but are mixed-up and out of order. Which one MUST be the 52 week low price?

A Brief History of Risk and Return

Diversification and Risky Asset Allocation

The Investment Process

Mutual Funds

The Stock Market

Common Stock Valuation

Stock Price Behaviour and Market Efficiency

Behavioural Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Return, Risk and Security Management

Performance Evaluation and Risk Management

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Option Valuation

Futures Contracts

Projecting Cash Flow and Earnings

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