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41.
If a firm creates an interest rate collar on a variable rate loan, then the rate
the firm pays will always:
42.
Which one of the following actions will provide you with the right, but not
the obligation, to sell the underlying asset at a specified price during a
specified period of time?
43.
Which one of the following obligates you only on the expiration date to sell
an asset at the strike price if the option is exercised?
44.
Which one of the following statements concerning option payoffs is
correct?
45.
You believe the price of a stock is going to decline within the next three
months. Which one of the following option payoff profiles will reflect a profit
if your belief is correct?
46.
You own shares of a stock and believe the stock price will increase in the
future. However, you realize the stock price could decline and want to
hedge that risk. Which one of the following option positions should you take
to create the desired hedge?
47.
Most of the evidence to-date indicates that firms with which two of the
following characteristics are most apt to frequently use derivatives?
I. firms with low financial distress costs
II. firms with high financial distress costs
III. firms with easy access to capital markets
IV. firms with constrained access to capital markets
48.
What is the closing value on this day for one March futures contract on
silver?
Silver - 6,000 troy oz.: U.S. dollars and cents per troy oz.
49.
You own three January futures contracts on gold. What is the total value of
your position as of the end of this day's trading?
Gold - 100 troy oz.: U.S. dollars and cents per troy oz.
50.
What is the closing value on this day for one March futures contract on
ethanol?
Ethanol - 32,000 U.S. gallons: U.S. dollars and cents per gallon
51.
You purchased two May futures contracts on silver when the price quote
was 10.420. Given today's closing prices as shown in the table, your total
profit or loss to date is:
Silver - 5,000 troy oz.: dollars and cents per troy oz.
52.
You purchased four April futures contracts on gold when the price quote
was 692.5. Given today's closing prices as shown in the table, what is your
current profit or loss?
Gold - 100 troy oz.: U.S. dollars and cents per troy oz.
53.
You decided to speculate in the market and sold 8 gold futures contracts
when the futures price was $867.50 per ounce. The price on the contract
maturity date was $730.40. What was your total profit or loss if the contract
size was 100 ounces?
54.
You expect to deliver 42,000 bushels of wheat to the market in July. Today,
you hedge your position by selling futures contracts on half of your
expected delivery at the final price of the day. Assume that the market price
turns out to be 582.0 when you actually deliver the wheat. How much more
or less would you have earned if you had not bought the futures contracts?
Wheat - 5,000 bu.: U.S. cents per bu.
