单选题The account for positive cash flows from the underlying asset, we need to adjust the put-call parity formula by:
单选题The price value of a basis point (PVBP) for a 18 year, 8 percent annual pay bond with a par value of $1000 and yield of 9 percent is closest to:
单选题Which of the following statements about skewness and kurtosis is FALSE? A. Kurtosis is measured using deviations raised to the fourth power. B. Values of relative skewness in excess of 0.5 in absolute value indicate large levels of skewness. C. Positive values of kurtosis indicate a distribution that has fat tails.
单选题Which of the following statements regarding sovereign bonds is least accurate? A. When a central government issues securities, those securities can only be denominated in the local currency regardless of where the bonds are issued. B. A central government can issue sovereign bonds in its national bond market, in another country's foreign bond market, or in the Eurobond market. C. Although the currency denomination of a government security is generally that of the home country, a central government's bonds will be rated by bond rating agencies as to perceived credit risk.
单选题A company reports its interest payments on long-term debt as a financing activity under IFRS
单选题AccordingtotheProfessionalConductStandardsrelatingtoloyalty,prudenceandcare,anaccuratelistofrequirementstomembersandcandidateswithrespecttoamember'sdutiestoclientswouldNOTinclude:A.actingwithreasonablecareandexciseprudentjudgment.B.complyingwiththeGlobalInvestmentPerformanceStandards().C.actingforthebenefitoftheirclients.
单选题The current market price of NTSC is $44 per share. One-year call options written on NTSC with strike price $50 are priced at $4.25. John Harris plans to implement a covered call strategy NTSC using these calls, and covering 1000 shares, What will the per-share expiration profit/loss be on this strategy if the NTSC is priced at $56 at expiration?
单选题Which of the following statements regarding the effects of unanticipated inflation on the labor market and the market for financial capital is most accurate? A. When the actual rate of inflation is higher than expected, employees receive less compensation for their labor and this represents a gain for employers at the expense of their employees. B. When the actual rate of inflation is declining, real wage rates of employees are lower than employers expected to pay, and employers gain at the expense of their employees. C. When there is unanticipated inflation, interest rates are not set high enough to compensate borrowers for the declining value of money so lenders gain at the expense of borrowers.
单选题With respect to tangible fixed assets, SFAS 143 requires that the capitalized value of an asset: A. be recorded on the balance sheet based on the market value at the time of acquisition less the cost associated with any ARO (asset retirement obligation). B. should include the future value of any ARO which is also recorded as a liability at the time of acquisition. C. should include the present value of any ARO which is also recorded as a liability at the time of acquisition.
单选题A floating-rate security is most likely to trade at a discount to its par value because the: A. security has an interest rate floor. B. next reset date is in three months. C. security's yield premium for credit risk decreases.
单选题The clearinghouse in a futures contract performs all but which of the following roles? The clearinghouse : A. allows traders to reverse their position without having to contact the other side of the position. B. guarantees the physical delivery of the underlying asset to the buyer of futures contracts. C. splits each trade and acts as a buyer to futures sellers and as a seller to futures buyers.
单选题Which of the following characteristic of perfect competition explains
why firms in perfect competition are referred to as price takers?
A. Each firm is small relative to the total market.
B. The demand curve is horizontal for firms in perfect competition.
C. There are many independent firms.
单选题In a monopoly industry, a firm is most likely to earn an economic profit in: A. short-run equilibrium only. B. long-run equilibrium only. C. both short-run and long-run equilibrium.
单选题Which of the following statements is most accurate regarding a firm's cost of preferred shares? A firm's cost of preferred stock is: A. the market price of the preferred shares as a percentage of its issuance price. B. the dividend yield on the firm's newly-issued preferred stock. C. approximately equal to the market price of the firm's debt as a percentage of the market price of its common shares.
单选题An analyst does research about theories of the business cycle. Which of the following econormc views argue that wages are "downward sticky", reducing the ability of a decrease in money wages to increase short-run aggregate supply and move the economy from recession back towards full employment? A. Neoclassical. B. Keynesian. C. Monetarist.
单选题Judy Dudley, a CFA candidate, just started her new job as an analyst and plans to make her first visit to a company that she is analyzing. According to CFA Institute Standards of Professional Conduct, which of the following statements regarding special cost arrangements and gifts is TRUE? To comply with the standard, Dudley should accept（ ）
单选题If a monopoly is producing in the inelastic range of the demand curve, increasing the quantity produced will most likely: A. decrease total revenue. B. have no effect on total revenue. C. increase total revenue.
单选题Which of the following should NOT be included as a constraint in an investment policy statement (IPS)?
单选题An economist predicts that over the next year, there is a 56 percent probability that oil prices will fall slightly and a 17 percent probability that new estate tax legislation will be enacted. According to this prediction, the probability that at least one of these independent events will occur is closest to:
单选题Which of the following is least likely to be a type of embedded option in a bond issue granted to bondholders? The right to: