If you buy the March put and don’t exercise before contract maturity, you will make a
profit if the stock price at maturity _______________________ from today’s price.
A.increases by more than 9.65 percent
B.increases by more than 4.57 percent
C.decreases by more than 3.94 percent
D.decreases by more than 11.99 percent
E.does not decrease by more than 5.64 percent
A banker’s acceptance is
A.a time draft drawn on the exporter’s bank.
B.a method to help importers evaluate the creditworthiness of exporters.
C.a liability of the importer and the importer’s bank.
D.an add-on instrument.
E.for greater than one year maturity.
For benefits to begin under a long-term care insurance plan the patient must
a.be in a nursing home.
b.be unable to perform a certain number of activities of daily living.
c.have been in a hospital immediately prior to needing assistance.
d.be covered under Social Security.
A stock or mutual fund with a ____ beta means the security goes up when the market as
a whole goes up average when the market is rising ; a ____ beta indicates the opposite.
a.positive; negative
b.negative; positive
c.zero; negative
d.positive; zero
Bank assets tend to have _____________ maturities and _____________ liquidity
than/as bank liabilities.
A.longer; greater
B.longer; lower
C.shorter; greater
D.shorter; lower
E.equal; equal
From 1990 to 2013, which one of the following money market securities actually
declined in terms of dollar amount outstanding?
A.commercial paper
B.treasury bills
C.federal funds and repos
D.negotiable CDs
E.banker’s acceptances
Melissa and Martin McArthur incurred the following interest expenditures:
How much will these expenditures add to their itemized deductions?
a.$7,425
b.$5,540
c.$6,000
d.$4,700
A negotiated OTC agreement to exchange currencies at a fixed date in the future but at
an exchange rate specified today is a
A.currency swap agreement.
B.forward foreign exchange transaction.
C.currency futures contract.
D.currency options contract.
E.spot foreign exchange transaction.
To collect Social Security retirement benefits based on a spouse’s earnings,
a.the marriage must have lasted at least ten years.
b.neither can have remarried.
c.both must be at least 62 years old.
d.All of these.
An investor has a 38 percent ordinary income tax rate and a 20 percent long-term
capital gains tax rate. The investor holds stock in a firm that could pay its usual $1 per
share dividend or reinvest the cash in the firm. The stock price is currently $30 per
share. If the firm does not pay the dividend, the share price will rise. If it pays the
dividend, the share price will stay the same. By how much must the share price rise if
the dividend is not paid in order to make the investor indifferent between receiving the
dividend or not?
A.$1.00
B.$0.59
C.$0.78
D.$0.97
E.$0.50
A contract that gives the holder the right to sell a security at a preset price only
immediately before contract expiration is a(n)
A.American call option.
B.European call option.
C.American put option.
D.European put option.
E.knockout option.
Shudan earned $9,600 working part-time last year. How many Social Security credits
did Shudan earn for Social Security coverage?
a.2
b.4
c.6
d.8