Long-term capital appreciation

Assignment Help Finance Basics
Reference no: EM13515513

Multiple Choice

1. The Orange County, California bankruptcy was largely due to the Treasurer’s use of

a. derivatives.

b. Mortgage-backed securities.

c. repurchase agreements.

d. zero coupon bonds.

2. All of the following are true regarding futures contracts except

a. they are marked to market.

b. they require payment of a performance bond.

c. they are a legally enforceable promise.

d. they are regulated by the SEC.

3. A security giving you the right to sell is a 

a. put option.

b. call option.

c. short futures contract.

d. long futures contract.

4. A forward contract is most similar to a

a. futures contract.

b. call option.

c. put option.

d. debt security.

5. A person who combines derivatives with a business risk is a __________.

a. speculator

b. hedger

c. spreader

d. trader

6. Which of the following is not a principal category of derivative asset?

a. options

b. futures

c. straddles

d. swaps

7. Finance is sometimes called

a. the study of arbitrage.

b. applied accounting.

c. behavioral economics.

d. mathematical science.

8. Derivative use includes all of the following except

a. income generation.

b. long-term capital appreciation.

c. speculation.

d. risk management.

9. Writing an option refers to

a. the establishment of a new position.

b. the sale of an existing position.

c. the creation and sale of a position.

d. the purchase of an existing position.

10. Futures contracts trade on all of the following except ___________.

a. silver

b. the weather

c. live cattle

d. land

Reference no: EM13515513

Questions Cloud

Sample mean distribution and t-interval : Sample Mean Distribution and T-Interval
Define how alkene or aromatic c-h stretches : Explain how alkene/aromatic C-H stretches are distinguished from alkane C-H stretches. Do the C-H stretch peaks in the IR spectra of triphenylmethanol, bromobenzene and benzophenone occur in the expected alkene/aromatic C-H stretching region
Using this data, report the descriptive statistics for each : Perform the following activities using a program such as MS Excel. Keep all calculations within one file. You may use separate worksheets within the same file, though.
What are the gross margin and operating profit : A sporting goods store with sales for the year of $400,000 and other income of $ 32,000 has operating expenses of $132,000. Its cost of goods sold is $207,000. What are the gross margin, operating profit and net profit in dollars?
Long-term capital appreciation : Derivative use includes all of the following except income generation.long-term capital appreciation.
The confidence interval contains the mean : From Data Set VI in Appendix B, select a sample of 20 values and find the 90% confidence interval or the mean of the number of acres. Find the mean of all values, and determine if the confidence interval contains the mean.
Determine the heliums velocity : A proton (mass 1.67*10 ^-27 kg) is moving at 1.40*10 ^-6 m/s directly toward a stationary helium nucleus (mass 6.64*10 ^-27 kg), After a head-on elastic collision, what is the helium's velocity
Define what volume will the gases expand against a constant : Consider a mixture of air and gasoline vapor in a cylinder with a piston. The original volume is 40. cm3. If the combustion of this mixture releases 860. J of energy, to what volume will the gases expand against a constant pressure of 650
Information regarding random samples of annual salaries : Information regarding random samples of annual salaries

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe a residual dividend policy

Compare, contrast, and discuss the amount of dividends (calculated in part b) associated with each of the three capital expenditure amounts.

  Maximize the market value of common shares

Determine which of the following is the best description of the aim of the financial manger in a corporation where shares are actively traded?

  What is the probability that in the next sample of 25 flight

At any given moment, the airport managers estimate that there is a 1% chance of a runway incursion (near-miss). What is the probability that in the next sample of 25 flights, 1 or fewer runway incursions will occur?

  Answer the following five questions on a separate document

directions answer the following five questions on a separate document. explain how you reached the answer or show your

  Modigliani miller model to find firm value

Suppose there are two firms operating in the same industry. The two firms are almost identical. The only difference is their capital structure. Firm UU has only equity while firm LL has 30% of debt and 70 percent of equity.

  Report showing practical application of strategic finance

Prepare a report showing the practical application of Strategic Finance

  What is the best estimate of the stock current market

The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?

  What is the percentage change in the price of bond sam

If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Sam?

  What will the market price per share be after the split

The Peanut Shack has 6,5000 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $145,600. The company just announced a 3-for-2 stock split. What will the market price per share be after the split?

  What is the amount to use as the annual sales

What is the amount to use as the annual sales figure when evaluating this project?

  What percentage of the firm will you own after the ipo

Your investment banker advises you that the prices of other recent IPOs have been set such that the P/E ratios based on 2007 forecasted earnings average 20.0. Assuming that your IPO is set at a price that implies a similar multiple, what will your IP..

  What will be the flotation-adjusted cost of equity

Assume Brown-Murphies faces a flotation cost of 14 percent on new equity issues.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd