Fin 401 Practice Exam
FINANCE 401
RYERSON UNIVERSITY
Final Exam – April 24, 2008 - SOLUTION
Name:__________________________________
Student #:_______________________________
Professor:_______________________________
- Time allowed: 3 hours
- Aids allowed: None except for an 8’1/2” by 11’ double sided cheat sheet and a calculator
- The exam is out of 60 marks.
- There are 40 multiple choice questions. Each multiple choice question is worth 1 mark.
- The remaining non-multiple choice questions are worth 20 marks.
- Answer all multiple choice questions on the marksense sheet.
- Answer all non-multiple choice questions in the space provided.
- Please put your name, student number, and professor’s name on the front of this exam questionnaire AND at the top of the non-multiple choice section.
- Print or write VERY NEATLY. If I can’t read your writing, your answers won’t get marked.
1. You buy 15 wheat futures contracts when the price is $2.61 per bushel (each contract is for 5,000 bushels). The price on the maturity date is $2.21. What is your payoff?
a) -$30,000 b) -$2,000 c) $0 d) $2,000 e) $30,000
2. You sell 10 gold futures contracts when the futures price is $342.70 per ounce (each contract is for 100 ounces). The price on the maturity date is $302.30. What is your payoff? a) -$40,400 b) -$4,040 c) $404 d) $4,040 e) $40,400
3. You buy one futures contract for 5,000 bushels of soybeans with a settlement price of $6.92 per bushel. If the price is $7.58 per bushel at the contract expiration, what is your payoff? a) -$37,900 b) -$3,300 c) $2,130 d) $3,300 e) $37,900
4. You purchased a May American call option on Netscape stock with an exercise price of $165. Which of the following statements is true? a) You have the right to
RYERSON UNIVERSITY
Final Exam – April 24, 2008 - SOLUTION
Name:__________________________________
Student #:_______________________________
Professor:_______________________________
- Time allowed: 3 hours
- Aids allowed: None except for an 8’1/2” by 11’ double sided cheat sheet and a calculator
- The exam is out of 60 marks.
- There are 40 multiple choice questions. Each multiple choice question is worth 1 mark.
- The remaining non-multiple choice questions are worth 20 marks.
- Answer all multiple choice questions on the marksense sheet.
- Answer all non-multiple choice questions in the space provided.
- Please put your name, student number, and professor’s name on the front of this exam questionnaire AND at the top of the non-multiple choice section.
- Print or write VERY NEATLY. If I can’t read your writing, your answers won’t get marked.
1. You buy 15 wheat futures contracts when the price is $2.61 per bushel (each contract is for 5,000 bushels). The price on the maturity date is $2.21. What is your payoff?
a) -$30,000 b) -$2,000 c) $0 d) $2,000 e) $30,000
2. You sell 10 gold futures contracts when the futures price is $342.70 per ounce (each contract is for 100 ounces). The price on the maturity date is $302.30. What is your payoff? a) -$40,400 b) -$4,040 c) $404 d) $4,040 e) $40,400
3. You buy one futures contract for 5,000 bushels of soybeans with a settlement price of $6.92 per bushel. If the price is $7.58 per bushel at the contract expiration, what is your payoff? a) -$37,900 b) -$3,300 c) $2,130 d) $3,300 e) $37,900
4. You purchased a May American call option on Netscape stock with an exercise price of $165. Which of the following statements is true? a) You have the right to