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Online quizzes
Online quiz 10
Description
Instructions
Multiple Attempts This Test allows 3 attempts. This is attempt number 1.
Force Completion This Test can be saved and resumed later.
Test/Surv ey Status
Question 1
10 points
Question 2
10 points
The shares of CBA are currently priced at $50 each. If a call option on CBA has an exercise price of $45, the
call
is out of the money.
is in the money.
sells for a higher price than if the stock is priced at $40.
A and C.
B and C.
Question 3
10 points
Question 4
10 points
Consider a one-year maturity call option and a one-year put option on the same
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stock, both with striking price $100. If the risk-free rate is 5%, the stock price is $103,
and the put sells for $7.50, what should be the price of the call?
$17.50
$15.26
$10.36
$12.26
none of the above
Question 5
10 points
Buyers of put options would prefer a ____ in the value of the underlying asset and sellers of call options would
Test/Surv
prefer a ____ in the value of the underlying
asset.ey Status
increase; increase
decrease; increase
increase; decrease
decrease; decrease
cannot tell without further information
Question 6
10 points
Question 7
10 points
Suppose you purchase one RIO Dec 100 call contract at $5 and write one RIO Dec 105 call contract at $2.
The option contract size is 1000 shares per contract. The maximum potential profit of your strategy is
$6000
$5000
$2000
$3000
$1000
Question 8
10 points
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Question 9
10 points
You purchase one September 50 put contract for a put premium of $2. What is the maximum profit that you
could gain from this strategy? The option contract size is 1000 shares per contract.
$48,000
$2000
$50,000
$52,000
none of the above
Question 10
10 points
Test/Surv ey Status
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