Use the following bond quotes to answer this question: $\begin{array}{lrr} \text { Issuer Name}& \text {Coupon }&\text {Maturity}&\text { High }&\text {Low } &\text { Last}&\text { Change }\\ \text { Alpha } &5.875& \text {Apr 2010 }&99.823&98.667&99.402&+.008\\ \text { Industrial } &\\ \text { Beta Movers } &7.120& \text {May 2036}&103.407&100.013&103.354&+.010 \\ \end{array}$ - The Alpha Industrial bonds pay an annual interest payment equal to 5.875 percent of:

A) $999.90. B) $1,000.00. C) $1,000.13. D) $1,033.54. E) $1,034.07. A) $999.90. B) $1,000.00. C) $1,000.13. D) $1,033.54. E) $1,034.07.

Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: $\begin{array}{ccccccc} \text { Strike }&\text { Symbol}&\text { Last}&\text { Chg }&\text { Bid }&\text { Ask }&\text { Vol }&\text { open Int }\\ 30.00 & \text { ZZBF } & 4.30 & \downarrow .07 & 4.30 & 4.40 & 62 & 3,429 \\ 32.50 & \text { ZZBZ } & 1.87 & \downarrow .07 & 1.82 & 1.87 & 236 & 8,168 \\ 35.00 & \text { ZZBG } & .01 & \downarrow .05 & .00 & .01 & 3119 & 38,017 \end{array}$ Puts: $\begin{array}{lcccccrr} \text { Strike } & \text { Symbol } & \text { Last } & \text { Chg } & \text { Bid } & \text { Ask } & \text { Vol } & \text { Open Int } \\ 30.00 & \text { ZZNF } & .01 & .00 & .00 & .01 & 0 & 7,258 \\ 32.50 & \text { ZZNZ } & .01 & \downarrow .02 & .00 & .01 & 562 & 34,972 \\ 35.00 & \text { ZZNG } & .60 & \downarrow.14 & .63 & .68 & 2637 & 19,686 \end{array}$ - You want the right, but not the obligation, to sell 300 shares of ZZ Industries stock at a price of $32.50 a share. How much will it cost you to establish this option position?

A) $3.00 B) $4.00 C) $3.60 D) $3.78 E) $3.82 A) $3.00 B) $4.00 C) $3.60 D) $3.78 E) $3.82

A) require payment in full at the time the contract is written. B) can be resold. C) establish the quantity to be exchanged but not the date of the exchange. D) establish both the quantity to be exchanged and the exchange date but not the price. E) are primary financial assets. A) require payment in full at the time the contract is written. B) can be resold. C) establish the quantity to be exchanged but not the date of the exchange. D) establish both the quantity to be exchanged and the exchange date but not the price. E) are primary financial assets.

Use the following soybean futures quotes to answer this question. Soybeans: 5,000 bushels, cents and 1/8ths of a cent per bushel $\begin{array}{ccccc} \operatorname{Exp} & \text { Last } & \text { Net Chg } & \text { Open } & \text { High } & \text { Low }& \text { Settle} \\ \text { 08 Sep } & 1314^{\prime} 0& -3^{\prime} 4 & 1340^{\prime} 2 & 1340^{\prime} 6 & 1313^{\prime} 4 &1314^{\prime}0\\ \text { 08 Nov } & 1285^{\prime }2 & +4{ }^{\prime}2 & 1306^{\prime}0 & 1312 ^{\prime}2&1280 ^{\prime}0&1285^{\prime}2 \\ \end{array}$ - What was the total price fluctuation on one September 08 contract on soybeans today?

A) $1,337.50 B) $1,362.50 C) $1,412.50 D) $1,460.00 E) $1,482.50 A) $1,337.50 B) $1,362.50 C) $1,412.50 D) $1,460.00 E) $1,482.50

Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: $\begin{array}{lcccccrr} \text { Strike } & \text { Symbol } & \text { Last } & \text { Chg } & \text { Bid } & \text { Ask } & \text { Vol } & \text { Open Int } \\ 30.00 & \text { ZZBF } & 4.30 & \downarrow .07 & 4.30 & 4.40 & 62 & 3,429 \\ 32.50 & \text { ZZBZ } & 1.87 & \downarrow .07 & 1.82 & 1.87 & 236 & 8,168 \\ 35.00 & \text { ZZBG } & .01 & .05 & .00 & .01 & 3119 & 38,017 \end{array}$ Puts: $\begin{array}{lcccccrr} \text { Strike } & \text { Symbol } & \text { Last } & \text { Chg } & \text { Bid } & \text { Ask } & \text { Vol } & \text { Open Int } \\ 30.00 & \text { ZZNF } & .01 & .00 & .00 & .01 & 0 & 7,258 \\ 32.50 & \text { ZZNZ } & .01 & \downarrow .02 & .00 & .01 & 562 & 34,972 \\ 35.00 & \text { ZZNG } & .60 & \downarrow .14 & .63 & .68 & 2637 & 19,686 \end{array}$ - You would like to have the right to purchase 250 shares of ZZ Industries stock at a price of $32.50 a share. How much will it cost you to buy options to meet this objective?

A) $103.11 B) $12.90 C) $374.00 D) $467.50 E) $561.00 A) $103.11 B) $12.90 C) $374.00 D) $467.50 E) $561.00

Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: $\begin{array}{ccccccc} \text { Strike }&\text { Symbol}&\text { Last}&\text { Chg }&\text { Bid }&\text { Ask }&\text { Vol }&\text { open Int }\\ 30.00 & \text { ZZBF } & 4.30 & \downarrow .07 & 4.30 & 4.40 & 62 & 3,429 \\ 32.50 & \text { ZZBZ } & 1.87 & \downarrow .07 & 1.82 & 1.87 & 236 & 8,168 \\ 35.00 & \text { ZZBG } & .01 & \downarrow .05 & .00 & .01 & 3119 & 38,017 \end{array}$ Puts: $\begin{array}{lcccccrr} \text { Strike } & \text { Symbol } & \text { Last } & \text { Chg } & \text { Bid } & \text { Ask } & \text { Vol } & \text { Open Int } \\ 30.00 & \text { ZZNF } & .01 & .00 & .00 & .01 & 0 & 7,258 \\ 32.50 & \text { ZZNZ } & .01 & \downarrow .02 & .00 & .01 & 562 & 34,972 \\ 35.00 & \text { ZZNG } & .60 & \downarrow.14 & .63 & .68 & 2637 & 19,686 \end{array}$ - You want to sell five call option contracts on ZZ Industries stock at a strike price of $32.50 a share. How much will you receive in option premiums if you place this order today?

A) $300 B) $1,290 C) $910 D) $728 E) $546 A) $300 B) $1,290 C) $910 D) $728 E) $546

Use these option quotes for JL stock to answer this question: \[\begin{array} {cccccccc} \text { Strike } & \text { Symbol } & \text { Lagt } & \text { Chy } & \text { Bid } & \text { Agk } & \text { Vol } & \text { Open Int } \\ 47.50 & \text { JLWH.x } & 6.00 & \uparrow .25 & 5.90 & 6.10 & 18 & 12 \\ 50.00 & \text { JLHJ.x } & 4.75 & \uparrow .30 & 4.80 & 5.00 & 17 & 14 \end{array}\] - The price you will pay (per underlying share)to buy the 50 call option on JL stock is:

A) $4.75. B) $4.80. C) $5.00. D) $5.90. E) $6.00. A) $4.75. B) $4.80. C) $5.00. D) $5.90. E) $6.00.

Exam 3: Overview of Security Tips

You bought a put option contract with a strike price of $37.50 and a premium of $1.80. At expiration, the stock was selling for $35 a share. What is the net total amount you received for your shares assuming that you disposed of your shares on the expiration date?

(Multiple Choice)

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(83)

Question 41

Use the following bond quotes to answer this question: Issuer Name Coupon Maturity High Low Last Change Alpha 5.875 Apr 2010 99.823 98.667 99.402 +.008 Industrial Beta Movers 7.120 May 2036 103.407 100.013 103.354 +.010 - The Alpha Industrial bonds pay an annual interest payment equal to 5.875 percent of:

(Multiple Choice)

4.8/5

(73)

Question 42

Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: Strike Symbol Last Chg Bid Ask Vol open Int 30.00 ZZBF 4.30 \downarrow.07 4.30 4.40 62 3,429 32.50 ZZBZ 1.87 \downarrow.07 1.82 1.87 236 8,168 35.00 ZZBG .01 \downarrow.05 .00 .01 3119 38,017 Puts: Strike Symbol Last Chg Bid Ask Vol Open Int 30.00 ZZNF .01 .00 .00 .01 0 7,258 32.50 ZZNZ .01 \downarrow.02 .00 .01 562 34,972 35.00 ZZNG .60 \downarrow.14 .63 .68 2637 19,686 - You want the right, but not the obligation, to sell 300 shares of ZZ Industries stock at a price of $32.50 a share. How much will it cost you to establish this option position?

(Multiple Choice)

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(86)

Question 43

Futures contracts:

(Multiple Choice)

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Question 44

A 4.5 percent coupon bond is currently quoted at 92.5 and has a face value of $1,000. What is the amount of each semi-annual coupon payment if you own three of these bonds?

(Multiple Choice)

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Question 45

If a bond is purchased at a premium, which of the following is true?

(Multiple Choice)

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Question 46

Money market instruments issued by a corporation:

(Multiple Choice)

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Question 47

A fixed-income security is defined as:

(Multiple Choice)

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Question 48

Use the following soybean futures quotes to answer this question. Soybeans: 5,000 bushels, cents and 1/8ths of a cent per bushel Exp Last Net Chg Open High Low Settle 08 Sep 1310 -4 1342 1346 1314 1310 08 Nov 1282 +42 1300 1312 1280 1282 - What was the total price fluctuation on one September 08 contract on soybeans today?

(Multiple Choice)

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Question 49

If you are willing to sell a stock and wish to receive the option premium you should:

(Multiple Choice)

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Question 50

An agreement that grants the owner the right, but not the obligation, to buy or sell a specific asset at a specified price during a specified time period is called a(n)________ contract.

(Multiple Choice)

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Question 51

A $1,000 face value bond has a 6.35 percent semi-annual coupon and sells for $960.00. What is the current yield?

(Multiple Choice)

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(86)

Question 52

Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: Strike Symbol Last Chg Bid Ask Vol Open Int 30.00 ZZBF 4.30 \downarrow.07 4.30 4.40 62 3,429 32.50 ZZBZ 1.87 \downarrow.07 1.82 1.87 236 8,168 35.00 ZZBG .01 .05 .00 .01 3119 38,017 Puts: Strike Symbol Last Chg Bid Ask Vol Open Int 30.00 ZZNF .01 .00 .00 .01 0 7,258 32.50 ZZNZ .01 \downarrow.02 .00 .01 562 34,972 35.00 ZZNG .60 \downarrow.14 .63 .68 2637 19,686 - You would like to have the right to purchase 250 shares of ZZ Industries stock at a price of $32.50 a share. How much will it cost you to buy options to meet this objective?

(Multiple Choice)

4.8/5

(83)

Question 53

You will earn a profit as the owner of a call option if the price of the underlying asset:

(Multiple Choice)

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(79)

Question 54

A financial asset that represents a claim on another financial asset is classified as a(n)________ asset.

(Multiple Choice)

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(79)

Question 55

Use these option quotes to answer this question: ZZ Industries: Price 34.36 Calls: Strike Symbol Last Chg Bid Ask Vol open Int 30.00 ZZBF 4.30 \downarrow.07 4.30 4.40 62 3,429 32.50 ZZBZ 1.87 \downarrow.07 1.82 1.87 236 8,168 35.00 ZZBG .01 \downarrow.05 .00 .01 3119 38,017 Puts: Strike Symbol Last Chg Bid Ask Vol Open Int 30.00 ZZNF .01 .00 .00 .01 0 7,258 32.50 ZZNZ .01 \downarrow.02 .00 .01 562 34,972 35.00 ZZNG .60 \downarrow.14 .63 .68 2637 19,686 - You want to sell five call option contracts on ZZ Industries stock at a strike price of $32.50 a share. How much will you receive in option premiums if you place this order today?

(Multiple Choice)

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(85)

Question 56

A security originally sold by a business or government to raise money is called a(n):

(Multiple Choice)

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Question 57

You bought four call option contracts with a strike price of $48.25 and an option premium of $1.30. At expiration, the stock was selling for $51.30 a share and you exercised your option. What is your total cost basis in the acquired shares?

(Multiple Choice)

4.9/5

(84)

Question 58

Use these option quotes for JL stock to answer this question: Strike Symbol Lagt Chy Bid Agk Vol Open Int 47.50 JLWH.x 6.00 \uparrow.25 5.90 6.10 18 12 50.00 JLHJ.x 4.75 \uparrow.30 4.80 5.00 17 14 - The price you will pay (per underlying share)to buy the 50 call option on JL stock is:

(Multiple Choice)

4.7/5

(75)

Question 59

You purchased six put option contracts with a strike price of $29.50 and a premium of $.95. At expiration, the stock was selling for $26.70 a share. What is the total net amount you received for your shares assuming that you disposed of your shares on the expiration date?

(Multiple Choice)

4.9/5

(75)

Question 60

You bought a put option contract with a strike price of $37.50 and a premium of $1.80. At expiration, the stock was selling for $35 a share. What is the net total amount you received for your shares assuming that you disposed of your shares on the expiration date?

Futures contracts:

A 4.5 percent coupon bond is currently quoted at 92.5 and has a face value of $1,000. What is the amount of each semi-annual coupon payment if you own three of these bonds?

If a bond is purchased at a premium, which of the following is true?

Money market instruments issued by a corporation:

A fixed-income security is defined as:

If you are willing to sell a stock and wish to receive the option premium you should:

An agreement that grants the owner the right, but not the obligation, to buy or sell a specific asset at a specified price during a specified time period is called a(n)________ contract.

A $1,000 face value bond has a 6.35 percent semi-annual coupon and sells for $960.00. What is the current yield?

You will earn a profit as the owner of a call option if the price of the underlying asset:

A financial asset that represents a claim on another financial asset is classified as a(n)________ asset.

A security originally sold by a business or government to raise money is called a(n):

You bought four call option contracts with a strike price of $48.25 and an option premium of $1.30. At expiration, the stock was selling for $51.30 a share and you exercised your option. What is your total cost basis in the acquired shares?

Use these option quotes for JL stock to answer this question: Strike Symbol Lagt Chy Bid Agk Vol Open Int 47.50 JLWH.x 6.00 \uparrow.25 5.90 6.10 18 12 50.00 JLHJ.x 4.75 \uparrow.30 4.80 5.00 17 14 - The price you will pay (per underlying share)to buy the 50 call option on JL stock is:

You purchased six put option contracts with a strike price of $29.50 and a premium of $.95. At expiration, the stock was selling for $26.70 a share. What is the total net amount you received for your shares assuming that you disposed of your shares on the expiration date?

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