Managerial Economics
Week 7 : Week 7 - Exam #1
Time Remaining: | |
1. What phrase is often used interchangeably with the phrase market capitalization? (Points : 1) Market value Open Interest Trading volume Notional value | 2. Assume that an investor lends 100 shares of Jiffy, Inc. common stock to a short seller. The bid-ask prices are $32.00 - $32.50. When the position is closed the bid-ask prices are $32.50 - $33.00. The commission rate is 0.5%. The market interest rate is 5.0% and the short rebate rate is 3.0%. Calculate the gain or loss to the lender. Assume the lender is not subject to a bid-ask loss or commissions. (Points : 1) $164.00 loss $100.00 gain $100.00 loss $164.00 gain | 3. During the growing season a corn farmer sells short corn futures contracts in an amount equal to her crop. If upon harvesting and selling her crop she maintains the contracts, she is then considered a: (Points : 1) Speculator Arbitrager Hedger None of the above | 4. What kind of risk does not disappear when spread across many investors? (Points : 1) Diversifiable Catastrophic Predictive Nondiversifiable | 5. Who from the following list would be considered a speculator by entering into a futures or options contract on commodities?(Points : 1) Corn delivery truck driver Food manufacturer Farmer None of the above | 6. Assume that you purchase 100 shares of Jiffy, Inc. common stock at the bid-ask prices of $32.00 - $32.50. When you sell the bid-ask prices are $32.50 - $33.00. If you pay a commission rate of 0.5%, what is your profit or loss? (Points : 1) $32.50 loss $16.25 loss $0 $32.50 gain | 7. Which of the following is not a derivative instrument? (Points : 1) Installment sales agreement Option agreement to buy land Contract to
Time Remaining: | |
1. What phrase is often used interchangeably with the phrase market capitalization? (Points : 1) Market value Open Interest Trading volume Notional value | 2. Assume that an investor lends 100 shares of Jiffy, Inc. common stock to a short seller. The bid-ask prices are $32.00 - $32.50. When the position is closed the bid-ask prices are $32.50 - $33.00. The commission rate is 0.5%. The market interest rate is 5.0% and the short rebate rate is 3.0%. Calculate the gain or loss to the lender. Assume the lender is not subject to a bid-ask loss or commissions. (Points : 1) $164.00 loss $100.00 gain $100.00 loss $164.00 gain | 3. During the growing season a corn farmer sells short corn futures contracts in an amount equal to her crop. If upon harvesting and selling her crop she maintains the contracts, she is then considered a: (Points : 1) Speculator Arbitrager Hedger None of the above | 4. What kind of risk does not disappear when spread across many investors? (Points : 1) Diversifiable Catastrophic Predictive Nondiversifiable | 5. Who from the following list would be considered a speculator by entering into a futures or options contract on commodities?(Points : 1) Corn delivery truck driver Food manufacturer Farmer None of the above | 6. Assume that you purchase 100 shares of Jiffy, Inc. common stock at the bid-ask prices of $32.00 - $32.50. When you sell the bid-ask prices are $32.50 - $33.00. If you pay a commission rate of 0.5%, what is your profit or loss? (Points : 1) $32.50 loss $16.25 loss $0 $32.50 gain | 7. Which of the following is not a derivative instrument? (Points : 1) Installment sales agreement Option agreement to buy land Contract to