FIN501 INVESTMENT ANALYSIS PRACTICE (LATEST
UPDATE) REAL QUESTIONS AND VERIFIED ANSWERS
|100% CORRECT | ALREADY GRADED A
Setter company's stock price is $43. You sold short 3 lots of the stock.
The initial margin is 60% and the
maintenance margin is 40%. What is your equity after this transaction.
Ans✓✓✓$7,740
Abi company is currently trading at $16. There are call and put options
with $15 strike price and 3 month
maturity. The company does not pay dividend. The risk free rate is 2.5
percent. Abi has 40 percent
standard deviation. What is the cumulative normal distribution of d1?
Ans✓✓✓0.6773
Which one of the following statements is correct?
Futures contracts can be closed out only by contract buyers.
Futures contracts must be held to maturity.
You cannot avoid accepting delivery once you purchase a futures
contract.
Futures contracts can be closed out by entering a reverse trade.
Ans✓✓✓Futures contracts can be closed out by entering a reverse trade.
The seller of a naked call is betting that the price of the underlying asset
will:
, will remain constant for a period of time and then increase prior to the
expiration date.
decrease or remain constant.
decrease and then increase prior to the expiration date.
increase. Ans✓✓✓decrease or remain constant.
Abi company is currently trading at $16. There are call and put options
with $15 strike price and 3 month
maturity. The company does not pay dividend. The risk free rate is 2.5
percent. Abi has 40 percent
standard deviation. What is d1? Ans✓✓✓0.4602
An investor who accepts the risk of a loss in exchange for the chance to
earn a profit is referred to as
which one of the following?
hedger
short seller
broker
speculator Ans✓✓✓speculator
BCC Inc. buys and repackage and sells oatmeal to supermarkets. The
company needs to quote a price at which it will sell oatmeal to a large
UPDATE) REAL QUESTIONS AND VERIFIED ANSWERS
|100% CORRECT | ALREADY GRADED A
Setter company's stock price is $43. You sold short 3 lots of the stock.
The initial margin is 60% and the
maintenance margin is 40%. What is your equity after this transaction.
Ans✓✓✓$7,740
Abi company is currently trading at $16. There are call and put options
with $15 strike price and 3 month
maturity. The company does not pay dividend. The risk free rate is 2.5
percent. Abi has 40 percent
standard deviation. What is the cumulative normal distribution of d1?
Ans✓✓✓0.6773
Which one of the following statements is correct?
Futures contracts can be closed out only by contract buyers.
Futures contracts must be held to maturity.
You cannot avoid accepting delivery once you purchase a futures
contract.
Futures contracts can be closed out by entering a reverse trade.
Ans✓✓✓Futures contracts can be closed out by entering a reverse trade.
The seller of a naked call is betting that the price of the underlying asset
will:
, will remain constant for a period of time and then increase prior to the
expiration date.
decrease or remain constant.
decrease and then increase prior to the expiration date.
increase. Ans✓✓✓decrease or remain constant.
Abi company is currently trading at $16. There are call and put options
with $15 strike price and 3 month
maturity. The company does not pay dividend. The risk free rate is 2.5
percent. Abi has 40 percent
standard deviation. What is d1? Ans✓✓✓0.4602
An investor who accepts the risk of a loss in exchange for the chance to
earn a profit is referred to as
which one of the following?
hedger
short seller
broker
speculator Ans✓✓✓speculator
BCC Inc. buys and repackage and sells oatmeal to supermarkets. The
company needs to quote a price at which it will sell oatmeal to a large
