In contrast to forward contracts and future contracts

Assignment Help Financial Management

Reference no: EM131925491

1. Comparative analysis is the technique by which we:

a. purchase stocks from a broker

b. measure the economic value of a potential asset in relation to the market

c. measure the return of a portfolio

d. eliminate the need for investment analysis.

2. A corporate bond bid price of 104 1/8 means that a buyer was willing to pay :

a. $104.80

b. $1041.80

c. $ 104.12

d. $ 1041.25

3. A convertible bond has a par value of $1000 and a current quote of 99 with a conversion price of $100. For how many shares may it be exchanged?

a. 5

b. 15

c. 10

d. 9

4. If a newly issued convertible bond is quoted at $90 and is convertible into 20 shares of stock , then the underlying stock will likely be trading at or below:

a. $40

b. $45

c. $100

d. $4

5. An investor buy two call options and two put options on the same security. What can you say about that person ?

a. she is expecting the market price to fluctuate significantly

b. she is trying to create a neutral hedge

c. she is most likely taking the long position because of the calls

d. she is most likely taking the short position because of the puts.

6. to make a profit by writing a call, the maker must expect:

a. the stock will advance

b. the call will be exercised

c. the call will be converted

d. the stock to decline

7. In contrast to forward contracts, future contracts :

a. trade on organized exchanges

b. have contract sizes tailored to investment needs

c. have negotiable expiration dates.

Reference no: EM131925491

Questions Cloud

How you approach critique differently from reading editorial : You should reflect on your process in writing the critique essay. How did you approach the critique differently from simply reading an editorial?

Medical ethics dilemma : Give an example for each of the following: a medical ethics dilemma, a bioethics situation, and a medical-legal problem.

Report a colleague or physician who is physically : Under what circumstances should you report a colleague or physician who is physically, psychologically, or pharmacologically impaired?

Expensive medical therapies for illnesses : Should prisoners be eligible to receive expensive medical therapies for illnesses?

In contrast to forward contracts and future contracts : Comparative analysis is the technique by which we. In contrast to forward contracts, future contracts

Determine your interest in non-profit organizations : Describe the type of legal structure that would be most appropriate for the non-profit organization.

What would be the first steps taken with a organization : What would be the first steps taken with a organization's leadership to gain buy-in when trying to implement a new healthcare policy into your healthcare.

How might his philosophy provide a tool for understanding : How might his/her philosophy provide a tool for understanding the existential dimensions of the issue/event?

How could other countries apply proven healthcare : How could other countries apply proven healthcare management models and practices from these international healthcare settings to healthcare settings

User Account

All Pages