单选题On a flight to Europe, Romy Haas, CFA, strikes up a conversation with a fellow passenger, Vincent Trujillo

单选题An options investor sells one stock put option with the following characteristics: Type of option: put option on stock Underlying asset: 100 shares of Bank of America Stock Exercise price : $55 per share Premium : $2.44 per share Expiration date : October By taking a SHORT position in this put option, the investor has A. obligated herself to sell 100 shares of Bank of America stock and receive $5500 during the specified time period (expiration date in October). B. purchased the right to decide whether to sell 100 shares of Bank of America stock and receive $5500 during the specified time period (expiration date in October). C. obligated herself to purchase 100 shares of Bank of America stock and pay $5500 during the specified time period (expiration date in October).

单选题An analyst does research about various risks between callable bond and optionfree bond. Compared to an otherwise identical callable bond, an option-free bond is least likely to be affected by: A. event risk. B. liquidity risk. C. volatility risk.

单选题A practice whereby a seller charges different prices to different consumers of the same product or service is called: A. price discrimination. B. price competition. C. fractional pricing.

单选题A 1 - month loan has a holding period yield of 1 percent. What is the annual yield of this loan on a bond -equivalent basis? A. 6.15%. B. 12.30%. C. 12.00%.

单选题A put on Stock X with a strike price of $40 is priced at $3.00 per share ; while a call with a strike price of $40 is priced at $4.50. What is the maximum per share loss to the writer of the uncovered put and the maximum per share gain to the writer of the uncovered call? the maximum per share loss the maximum per share gain ①A. $37.00 $4.50 ②B. $37.00 $37.00 ③C. $4.50 $4.50

单选题根据下表所示的数据解答问题： 离散型随机变量X的概率分布 X 1 2 3 4 5 P(X) 0.18 0.16 0.08 0.25 0.33 The cdf of 4, or F(4) is:

单选题AnassetmanagementfirmgeneratedthefollowingannualreturnsintheirU.S.largecapequityportfolio:The2012returnneededtoachieveatrailingfiveyeargeometricmeanannualizedreturnof5.0%whencalculatedattheendof2012isclosestto:

单选题George's Appliance Center sells big screen televisions. On a representative model, when the price was reduced from $ 2450 to $ 2275, monthly demand increased from 175 to 211 units. What is the price elasticity of demand? A. -2.14. B. -1.69. C. -2.53.

单选题An options investor purchases one put option on March coffee futures. The put has the following characteristics: Type of option put option Underlying asset 1 March coffee futures contract(37500pounds) Exercise price $ 0.775 per pound Premium $ 0.0425 per pound Expiration date March The current price (futures price) of the March coffee futures contract is $ 0.762 per pound. This LONG put option is: A. in the money in the amount of $ 0.013 per pound. B. in the money in the amount of $ 0.7325 per pound. C. out of the money in the amount of $ 0.762 per pound.

单选题When computing the weighted average cost of capital (WACC) and assuming a fixed-rate non- callable bond is currently selling above par value, the before-tax cost of debt is closest to the:

单选题An investor is considering the purchase of Security X, which matures in ten years with a par value of $1000. During the first five years X has a 6% coupon with quarterly payments. During the remaining five years, X has an 8% coupon with quarterly payments. The face value is paid at maturity. A second 10-year security, Security Z, has a 6% semiannual coupon and is selling at par. Assuming that X has the same bond equivalent yield as Z, what is the price of Security X?

单选题An analyst determines that an 8% option-free bond, maturing, in 2015, would experience a 3% change in price if market interest rise by 50 basis points. If market interest rates instead fall by 50 basis points, the bond's price would:

单选题The following interest rate information is observed:

单选题Which of the following statements least accurately describes the advantages and disadvantages of valuation with the P/E multiple?

单选题Would the following ratios be useful in measuring the profitability of a firm? Ratio 1: Cash plus short-term marketable investments plus receivables divided by average daily cash expenditures. Ratio 2: Earnings before interest and taxes divided by average total assets. Ratio 1 Ratio 2 ①A. No No ②B. Yes Yes ③C. No Yes

单选题An analyst does research about difference between forward market and future market. Compared with contracts in the forward market, contracts in the futures market are least likely to be appropriately described as transactions that are: A. public. B. customized according to the counterparts' requests. C. based on an agreement to buy or sell an underlying asset at a future date at a price agreed on today.

单选题Pricesofafuturescontractforfiveconsecutivetrading-daysareprovidedinthetablebelow.Theinitialmarginrequirementissetat$6.00percontractandthemaintenancemarginis$3.60percontract.DayFuturesPrice0$12011182117311941235125Onday0,atraderentersintoashortpositionfor15contracts.Theendingbalanceforthemarginaccountonday5isclosestto:

单选题Sterling Company is a start-up technology firm that has been experiencing super-normal growth over the past two years. Selected common-size financial information follows: 2007 Actual % of Sales 2008 Forecast % of Sales Sales 100 % 100% Cost of goods sold 60% 55% Selling and administration expenses 25% 20% Depreciation expense 10% 10% Net income 5% 15% Non-cash operating working capital 20% 25% Non-cash operating working capital = Receivables + Inventory - Payables For the year ended 2007, Sterling reported sales of $ 20 million. Sterling expects that sales will increase 50 percent in 2008. Ignoring income taxes, what is Sterling" s forecast operating cash flow for the year ended 2008, and is this forecast likely to be as reliable as a forecast for a large, well diversified, firm operating in mature industries? Operating cash flow Reliable forecast ①A. $ 4.0 million Yes ②B. $ 4.0 million No ③C. $ 4.5 million No

单选题Given a normally distributed population with a mean income of $40000 and standard deviation of $ 7500, what percentage of the population makes between $ 30000 and $ 35000? A. 15.96. B. 13.34. C. 41.67.