Exam 3: Overview of Security Types

Alicia owns 500 shares of Danube stock.She thinks the market price will continue to rise but would like to ensure that she can get at least $47.50 a share should she decide to sell her shares. The 47.50 call option is quoted at $1.05 bid,$1.15 ask.The 47.50 put is quoted at $0.80 bid,$0.85 ask.How much will it cost her to ensure that she can sell all of her shares for at least $47.50 each?

If you want the right,but not the obligation,to buy a stock at a specified price you should:

What price will you receive (per underlying share)if you sell the 47.50 call option on JL stock?

Vivian purchased 700 shares of Aldridge,Inc.stock at what turns out to be the lowest price during the past year.How much has the value of her shares changed since she made this investment?

Which one of the following is a derivative asset?

What is the current price of a $1,000 face value Alpha Industrial bond?

What was the prior day's closing price on the 50 call option on JL stock?

What is the latest earnings per share for Baker Co.stock if the PE is 22?

A financial asset that represents a claim on another financial asset is classified as a _____ asset.

Preferred stock:

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

The Alpha Industrial bonds pay an annual interest payment equal to 5.875 percent of:

A pension fund purchased 25 round lots of Baker Company stock at the closing price of the day yesterday.What was the cost of that purchase?

You want to sell four 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 futures contract is an agreement:

Riverside Metals recently issued some debt that had an original maturity of nine months.This debt is best classified as a(n):

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

What are the lowest and highest prices per bushel at which the March 08 wheat futures contract sold today?

The annual interest payment divided by the current price of a bond is called the:

A 7.5 percent coupon bond is currently quoted at 89.3 and has a face value of $1,000.What is the amount of each semi-annual coupon payment if you own three (3)of these bonds?