sie NEW
Treasury bonds mature in A) 2 years or more B) 1 year or more C) less than 2 years D) 10 years or more
10 years or more
Which of the following settlement arrangements has trade and settlement occurring on the same day? A) Regular way settlement B) Buyer's option C) Seller's option D) Cash settlement
Cash settlement
Which of the following corporate bonds is backed by the securities of other corporations or those of a subsidiary? A) Collateral trust bond B) Mortgage bond C) Equipment trust certificate D) Debenture
Collateral trust bond
The prime rate is set by A) the Securities and Exchange Commission B) individual banks C) the Federal Open Market Committee D) the Federal Reserve Board
individual banks
Securities acquired through some means other than a registered public offering are known as A) restricted B) affiliate's stock C) control D) convertible
restricted
FINRA requires that member firms provide at least how many names as emergency contacts as a part of their business continuity plan? A) two B) one only if that person is a principal of the firm C) three D) one
two
What is the maximum you are permitted to contribute to a ira over 50 -2000 -6000 -7000 -15000
$7000
What is the maximum you are permitted to contribute to a Coverdall Esa -2000 -6000 -7000 -15000
-2000
Upon termination a member firm must file a U-5 within how many days
30 days
Regarding different types of debt security maturities available to issuers, which of the following is accurate? A) A serial maturity uses elements of both term and balloon maturities. B) No maturity types incorporate the elements of any other. C) A term maturity uses elements of both serial and balloon maturities. D) A balloon maturity uses elements of both serial and term maturities.
A balloon maturity uses elements of both serial and term maturities
Which of the following would most closely match the meaning of a "red herring"? A) A tombstone advertisement B) Prospectus C) A preliminary prospectus D) A registration statement
A preliminary prospectus
Portfolio diversifying might be used to reduce which of the following risks? A) Business risk B) Market risk C) Interest-rate risk D) Inflation risk
Business risk
If a prospectus is being used to close a mutual fund sale, it must be given to the investor A) within 5 business days of purchase B) always before the sales presentation begins C) before or during the sales presentation D) within 3 business days of purchase
C) before or during the sales presentation
Which of the following is a member of the underwriting syndicate? -municipal advisor -co-manager -market maker -qualified institutional buyer
Co-manager
Which of the following corporate bonds is backed by the securities of other corporations or those of a subsidiary? A) Debenture B) Mortgage bond C) Collateral trust bond D) Equipment trust certificate
Collateral trust bond
Which of the following items would be considered one of the SECs missions? -facilitate capital formation -approve new market participants -write new rules -discipline securities industry firms
Facilitate capital formation
As long as it is not restricted in any documentation, margin trading is permissible in which of the following accounts? Corporate IRA Partnership Fiduciary A) I and III B) II and IV C) I and IV D) II and III
I and III
Straight preferred shares are noncumulative are cumulative allow for missed dividends to be paid later have no provision for paying missed dividends later A) I and IV B) II and III C) II and IV D) I and III
I and IV
When a limited partnership is liquidated (dissolved), the priority of payments to settle accounts are made from first to last in which order? General partners Limited partners General creditors Secured creditors A) I, IV, III, II B) IV, III, II, I C) I, II, III, IV D) IV, III, I, II
IV, III, II, I
In which of the following accounts would the use of margin always be prohibited? A) Individual retirement accounts B) Fiduciary accounts C) Corporate accounts D) Partnership accounts
Individual retirement accounts
Which of following securities is least likely to have an active trading market? A) Preferred shares B) Municipal bonds C) Limited partnership interests D) Real estate investment trusts (REITs)
Limited partnership interests
To purchase an option, an investor must pay the? -book value -prior day closing price -bid price -premium
Premium
Who is the primary regulator for the us securities industry? -nasdaq -sec -finra -MSRB
SEC
Regarding primary offerings, which of the following is TRUE? A) A corporation can have two primary offerings—the initial public offering (IPO) and an additional public offering (APO). B) A corporation can have only one primary offering—the initial public offering (IPO). C) There is no limit to the number of primary offerings a corporation can issue. D) After its initial public offering (IPO), a corporation can have only one more primary offering—its subsequent primary offering (SPO).
There is no limit to the number of primary offerings a corporation can issue.
Treasury securities settlement cycle is? -t+0 -t+1 -t+2 -t+3
Treasury and options is T+1 Equities are T+2
An officer of a financial firm has identified what might represent suspicious behavior on the part of a customer, involving more than $5,000. When must the firm file a suspicious activity report (SAR)? A) Within 5 business days B) By the end of the business day C) Within 30 calendar days D) Within 180 calendar days
Within 30 calendar days
Hedge funds are considered A) a form of private investment company and heavily regulated B) a form of mutual fund and, therefore, unregulated C) a form of management company and, therefore, regulated D) a form of private investment company and, therefore, unregulated
a form of private investment company and, therefore, unregulated
The options disclosure document must be provided A) only if the customer requests to see it B) at or before the time of account approval C) at the time the confirmation for the first transaction is delivered D) before any discussions of options can occur with the customer
at or before the time of account approval
When the Federal Reserve Board wants to expand (loosen) the money supply, it will A) sell Treasury securities to banks in the open market B) buy corporate securities from banks in the open market C) Sell corporate securities to banks in the open market D) buy Treasury securities from banks in the open market
buy Treasury securities from banks in the open market
Promissory notes are a form of A) Treasury notes issued by the U.S. government B) jumbo CDs issued by banks C) commercial paper issued by corporations D) Treasury bills issued by the U.S. government
commercial paper issued by corporations
Question ID: 939692 Treasury bills (T-bills) are A) issued at face value, with all interest paid in monthly checks B) issued at a discount to par, paying interest at maturity C) issued at a discount, with a stated interest rate paid annually D) issued at face value, with a stated rate of return received as interest annually
issued at a discount to par, paying interest at maturity
An associated person is unable to work for any business other than his member firm without having the employing broker-dealer's A) knowledge of the activity B) assuming liability for that business C) authorization by a principal D) permission in writing
knowledge of the activity
Bonds can be issued with additional features attached, making them more attractive to investors. All of the following can be considered such features EXCEPT A) convertible B) callable C) maturity D) puttable
maturity
Repurchase agreements and reverse repurchase agreements are A) intermediate-term notes B) long-term bonds C) money market instruments D) equity instruments
money market instruments
All of the following are identified as types of investment companies in the Investment Company Act of 1940 EXCEPT A) unit investment trust B) mutual fund C) face-amount certificate company D) municipal bond pool
municipal bond pool
A method of registering securities at the state level that is reserved only for federal covered securities is known as A) notice filing B) qualification C) coordination D) federal covered application
notice filing
The Depository Trust Company (DTC) A) is a member of the Securities Exchange Commission B) serves the custody needs of securities industry participants C) offers demand accounts such as checking D) offers traditional savings accounts
serves the custody needs of securities industry participants
A select pair or group of companies organized to underwrite corporate or municipal securities is BEST known as a(n) A) investment club B) introducing broker-dealer C) market maker D) syndicate
syndicate
Bonds can typically be issued with A) term or series maturities only B) term, serial, or balloon maturities C) term or balloon maturities only D) term, series, or balloon maturities
term, serial, or balloon maturities
Implementing monetary policy, and thereby undertaking the responsibility to maintain the stability of the U.S. financial system, is A) the New York Stock Exchange (NYSE) B) the Securities and Exchange Commission (SEC) C) the Internal Revenue Service (IRS) D) the Federal Open Market Committee (FOMC)
the Federal Open Market Committee (FOMC)
A broker-dealer firm has just rehypothecated a thousand shares of MMS stock. This means A) the customer pledged the stock to the firm, which has now pledged it to a bank B) the customer withdraws the stock from the bank and pledges it directly to the firm C) the firm has withdrawn the stock from a bank and pledged it to the customer D) a bank has pledged the stock to the firm, which now pledges it to the customer
the customer pledged the stock to the firm, which has now pledged it to a bank
With a balloon maturity, A) interest only is paid on the serial dates with all principal paid on the final maturity date B) only interest is paid on the final maturity date with principal paid on the serial dates C) the major portion of the principal debt is paid over scheduled seral maturity dates D) the major portion of the principal debt is paid on the final maturity date
the major portion of the principal debt is paid on the final maturity date
customer wanting to open a margin account is told that the securities will be held in street name. This means that the securities will be registered in A) the name of the bank supplying the loan B) the names of the customer and the broker-dealer jointly C) the name of the customer D) the name of the broker-dealer
the name of the broker-dealer
A hedge fund having a "lock-up provision" means that A) the fund organizers are fully accountable and can be sued in the courts with full ramifications B) investors are required to maintain the investment for a minimum length of time C) a minimum return is guaranteed or investments are fully refundable—locked-up D) provisions have been made to "lock up" new buyers so sales of shares can be made easily
investors are required to maintain the investment for a minimum length of time
A guaranteed bond A) is debt backed by another company, such as a subsidiary company B) is debt backed by another company, such as a parent company C) is backed by physical assets of either a parent company or a subsidiary company D) is a secured debt instrument
is debt backed by another company, such as a parent company
A client has established a long put position. The contract will have intrinsic value when the price of the underlying stock is A) anywhere near the exercise price, above or below B) less than the exercise price C) greater than the exercise price D) equal to the exercise price
less than the exercise price
Question ID: 940017 Class C mutual fund shares are also known as A) level-load shares B) intermediate shares C) periodic-load shares D) successive-load shares
level-load shares
Those who look to hide money from government agencies and law enforcement to avoid the payment of taxes or to fund criminal enterprises often look to launder money in the following order: A) placement, integration, layering B) placement, layering, integration C) layering, placement, integration D) integration, layering, placement
placement, layering, integration
All of the following are true for 529 plans EXCEPT A) withdrawals would be tax free at the federal level if used for qualified education expenses B) contributions to the plan are considered gifts for tax purposes C) plan donors must be related to the student benefactor D) any adult can open a 529 plan for a student
plan donors must be related to the student benefactor
The Investment Company Act of 1940 classified all the following as investment companies EXCEPT A) management companies B) face-amount certificates C) private investment companies D) unit investment trusts
private investment companies
he Uniform Securities Act (USA) provides a legal framework for the registration of A) securities at the state level B) foreign securities traded abroad C) variable annuities at both state and federal levels D) mutual funds at the federal level
securities at the state level
A registered representative has a customer who is interested in utilizing options strategies such as spreads and straddles. The RR's firm does not offer options transactions as part of their existing business model. As such, the RR directs the customer to open an account through another broker-dealer. This would be known in the securities industry as A) selling away B) investing away C) placing away D) trading away
selling away
Treasury bills (T-bills) are A) short-term debt obligations issued monthly B) short-term debt obligations issued weekly C) intermediate-term debt obligations issued monthly D) intermediate-term debt obligations issued weekly
short-term debt obligations issued weekly
Treasury bills (T-bills) are?
short-term debt obligations issued weekly
Question ID: 940241 A party wishing to solicit proxy authority to vote a particular stockholder's shares must register with A) the regional exchange where the stock is traded B) the Securities and Exchange Commission C) the New York Stock Exchange D) the Financial Industry Regulatory Authority
the Securities and Exchange Commission
The flow of money between the United States and other countries is known as A) the balance of trade B) the balance of payments C) the surplus D) the payment reserves
the balance of payments
The flow of money between the United States and other countries is known as A) the balance of trade B) the surplus C) the payment reserves D) the balance of payments
the balance of payments
To the benefit of the bondholder, a puttable bond is likely to be put back to the issuer A) when interest rates rise B) when interest rates are volatile, moving both up and down over short periods of time C) when interest rates remain stable for long periods of time D) when interest rates fall
when interest rates rise
Which of the following securities is the underlying asset used to create an ADR? A) Bonds B) Common shares C) Warrants D) Preferred shares
Common shares
Which of the following are types of accounts not typically used for retirement funds -Roth ira -Coverdall Esa -401k -ira
Coverdall ESA -used for high school or college investments
Which of the following would lead to a standardized cost-base adjustment for stockholders? A) Spinoff B) Takeover C) Merger D) Dividend
Dividend
Which of the following securities would most likely have the lowest expense ratio? A) Exchange-traded fund B) Nonqualified variable annuity C) Qualified variable annuity D) Mutual fund
Exchange-traded fund
Which of the following organizations was created to protect investors financially from a bank failure? A) FDIC B) OFAC C) FRB D) SIPC
FDIC
Which of the following would be the interest rate charged for overnight, uncollateralized loans negotiated between two money center banks? A) Repo rate B) Discount rate C) Federal funds rate D) Prime rate
Federal funds rate
Underwriters acting as principals and committing to purchase any unsold shares for the syndicate account would BEST be described as being engaged in a(n) A) Initial public offering B) Firm commitment C) Primary D) Best efforts
Firm commitment
Brokers placing orders for their own account ahead of notably large customer orders that are known to be entering the market in an attempt to gain from the price movement that is likely to occur is an example of what prohibited activity? A) Breakpoint sale B) Insider trading C) Marking the close D) Front running
Front running
Which of the following is an example of an unsecured debt security? Debenture Preferred stock Mortgage bond Income bond A) I and IV B) I and II C) I and III D) II and IV
I and IV
Which of the following pairs are NOT covered by the Federal Deposit Insurance Corporation (FDIC) at any level? A) Mutual funds and annuities B) Certificates of deposit and mutual funds C) Certificates of deposit and self-directed IRAs D) Savings accounts and annuities
Mutual funds and annuities
How often may funds be rolled over from one state's Section 529 plan to another's? A) Once every 12 months B) Once per semester C) As often as necessary D) No more than twice per calendar year
Once every 12 months
Which of the following is an example of an equity security? A) Municipal bonds B) Debentures C) Preferred stock D) Mortgage bonds
Preferred stock
Each of the following is defined as an investment company EXCEPT A) A closed-end management company B) An open-end management company C) Fixed and nonfixed unit investment trusts (UITs) D) Real estate investment trusts (REITs)
Real estate investment trusts (REITs)
Which of the following statements about rights and warrants is TRUE? A) Rights are long term; warrants are short term. B) Rights and warrants are both short term. C) Rights are short term; warrants are long term. D) Rights and warrants are both long term.
Rights are short term; warrants are long term.
Which of the following would all be considered the same regarding yields on debt instruments? A) Nominal, yield to call, and yield to maturity B) Nominal, coupon, and yield to call C) Stated, nominal, and yield to maturity D) Stated, nominal, and coupon yields
Stated, nominal, and coupon yields
Your client has a long-term investment time horizon and is willing to accept some risk to achieve a better rate of return. Of the following, which would be the least suitable recommendation? A) Corporate bonds and T-bonds B) T-bills and negotiable CDs C) Preferred stock D) Common stock
T-bills and negotiable CDs
Which of the following is TRUE for U.S. Treasury-issued securities? A) T-bills are purchased at a discount, while T- bonds are purchased as a percentage of par. B) T-bills and T-bonds pay interest semiannually. C) T-notes are purchased at a discount to par, while T-bonds are purchased as a percentage of par. D) T-notes and T-bills pay interest annually.
T-bills are purchased at a discount, while T- bonds are purchased as a percentage of par
List the following treasury securities from the longest to the shortest maturities. A) T-bills, T-bonds, T-notes B) T-bills, T-notes, T-bonds C) T-bonds, T-bills, T-notes D) T-bonds, T-notes, T-bills
T-bonds, T-notes, T-bills
Question ID: 1230937 Joe Jonas, a registered representative with Foxtail Advisors, has received an adverse ruling from a FINRA Department of Enforcement Hearing. He believes the DOE has misapplied a rule and wants to appeal the decision. He would file his appeal with A) Municipal Securities Regulatory Board (MSRB) B) The National Adjudicatory Council (NAC) C) Federal Reserve Board (FRB) D) Federal Bureau of Investigation (FBI)
The National Adjudicatory Council (NAC)
Which of the following is TRUE for exchange-traded funds (ETFs)? A) The SEC has classified them as mutual funds, and they have operating costs and expenses that are lower than most mutual funds. B) The SEC has classified them as a type of open-end fund, and they have operating costs and expenses that are lower than most mutual funds. C) The SEC has classified them as a type of open-end fund, and they have operating costs and expenses that are higher than most mutual funds. D) The SEC has classified them as mutual funds, and they have operating costs and expenses that are higher than most mutual funds.
The SEC has classified them as a type of open-end fund, and they have operating costs and expenses that are lower than most mutual funds.
For securities held in "street name," which of the following is TRUE? A) The bank accepting the securities as collateral is the beneficial owner. B) The customer is the beneficial owner. C) The broker-dealer is the beneficial owner. D) The customer is the named or nominal owner.
The customer is the beneficial owner.
Which of the following is the rate of interest charged by the Federal Reserve Bank (FRB) for short-term loans to its member banks? A) The broker call loan rate B) The prime rate C) The discount rate D) The federal funds rate
The discount rate
Regarding municipal general obligation (GO) bonds, which of the following is TRUE? A) The higher the statutory debt limit, the safer for bondholders B) The lower the statutory debt limit, the higher the risk will be for bondholders C) The lower the statutory debt limit, the safer for bondholders D) The higher the statutory debt limit, the less risk of excessive borrowing by the municipality
The lower the statutory debt limit, the safer for bondholders
Which of the following is a debt instrument that pays no periodic interest? A) Treasury bond B) Corporate bond C) Treasury STRIP D) Treasury note
Treasury STRIP
Which of the following securities would always be considered a zero coupon security -corporate bond -treasury bill -preferred stock -listed option
Treasury bill, don't pay coupons or dividends
Question ID: 939713 A brokerage firm places U.S. Treasury notes and bonds in a trust at a bank and then issues securities collateralized by either the principal or interest payments those notes and bonds represent. These new securities the broker-dealer is offering are A) collateralized obligations B) Treasury receipts C) Treasury bills D) Treasury STRIPS
Treasury receipts
The regulatory element of training requires that all registered persons complete a computer-based training session how frequently? A) Within 90 days of the person's third registration anniversary and then every 2 years thereafter B) Within 90 days of the person's second registration anniversary and then every 3 years thereafter C) Within 120 days of the person's second registration anniversary and then every 3 years thereafter D) Within 120 days of the person's third registration anniversary and then every 2 years thereafter
Within 120 days of the person's second registration anniversary and then every 3 years thereafter
When is the electronic filing of all information on customer complaints by broker-dealers with FINRA due? A) Within 15 days of the end of each calendar quarter B) Within 30 calendar days of receipt of the complaint C) Semiannually, in June and December D) Within 15 days of the end of each calendar year
Within 15 days of the end of each calendar quarter
Question ID: 939992 An investor has entered into a contract to pay an investment company a specific sum of money in exchange for the company's agreement to pay the investor a specific (larger) sum of money on a specific date in the future. The investment company must be A) a closed-end investment company B) a mutual fund C) a unit investment trust. D) a face-amount certificate company
a face-amount certificate company
An investor owning 400 shares of CDS stock receives notice that the stock will be split. When the split is complete, the customer owns 600 shares of stock. The split must have been A) a reverse, uneven split B) a forward, even split C) a reverse, even split D) a forward, uneven split
a forward, uneven split
SKRAM corporation is appealing directly to the shareholders of IDNIC corporation to acquire shares of IDNIC stock. This appeal is best described as A) an acquisition B) a hostile takeover with IDNIC the target company C) a sell-off with IDNIC the target company D) a buy-back with SKRAM the bidder company
a hostile takeover with IDNIC the target company
An investment that allows for a share in the income, gains, losses, deductions, and tax credits of the business entity to pass through to investors is known as A) an option B) a real estate investment trust C) a limited partnership D) a general partnership
a limited partnership
Treasury bond (T-bond) interest is stated as A) a discount to the face value B) a percentage of the purchase price C) a percentage of par value D) a premium over the price paid
a percentage of par value
Treasury note (T-note) interest is stated as A) a premium over the price paid B) a percentage of the purchase price C) a discount to the face value D) a percentage of par value
a percentage of par value
An investor notices that a bond purchased several years ago at 95 is now priced at 90. The investor sells the bond for 90, then immediately repurchases it for 90. This action is known as A) a wash sale B) matched orders C) pegging D) marking the close
a wash sale
Failure to honor a firm quote is called A) backing away. B) front running. C) a wash sale D) matching orders
backing away.
All of the following may be purchased on margin EXCEPT A) municipal securities B) call and put contracts C) exchange listed securities D) NASDAQ listed stocks
call and put contracts
Question ID: 940401 A violation known as "churning" refers to A) repeatedly purchasing stock in order to keep the price supported. B) excessive transactions done solely for the purpose of generating commissions. C) purchasing calls on a particular stock for your own account before entering a large customer order to purchase the stock. D) repeatedly selling a stock short in order to prevent a price rise.
excessive transactions done solely for the purpose of generating commissions.
Question ID: 940340 Suspicious activity reports (SARs) are A) filed to the Financial Crimes Enforcement Network (FinCEN) as required by the USA PATRIOT Act B) filed with FINRA as required by FINRA's code of conduct C) filed with the SEC as required by the Securities Exchange Act of 1933 D) filed internally only for analysis involving potential problematic patters
filed to the Financial Crimes Enforcement Network (FinCEN) as required by the USA PATRIOT Act
A convertible feature for preferred shares allows the owner to exchange the shares A) for the preferred shares of another issuer B) for as many bonds as the issuer is willing to issue at that point in time C) for a fixed number of bonds issued by the corporation D) for a fixed number of shares of the issuing corporation's common stock
for a fixed number of shares of the issuing corporation's common stock
Each of the following are likely benefits of owning shares of common stock EXCEPT A) interest payments B) voting rights C) limited liability D) dividend payment
interest payments
When the demand for money exceeds the supply, A) interest rates rise, making consumer borrowing easier B) interest rates fall, making consumer borrowing easier C) interest rates rise, making consumer borrowing more difficult D) interest rates fall, making consumer borrowing more difficult
interest rates rise, making consumer borrowing more difficult
Question ID: 939695 U.S. Treasury notes are U.S. government-issued A) short-term debt securities with maturities of 2-12 months B) short-term debt securities with maturities of 2-10 years C) long-term debt securities with maturities of 10-20 years D) intermediate-term debt securities with maturities of 2-10 years
intermediate-term debt securities with maturities of 2-10 years
U.S. Treasury notes are U.S. government-issued A) short-term debt securities with maturities of 2-10 years B) long-term debt securities with maturities of 10-20 years C) short-term debt securities with maturities of 2-12 months D) intermediate-term debt securities with maturities of 2-10 years
intermediate-term debt securities with maturities of 2-10 years
Which of the following shows Treasury bills, Treasury bonds, and Treasury notes listed in ascending order of maturity? A) Bills, bonds, notes B) Bills, notes, bonds C) Notes, bills, bonds D) Bonds, notes, bills
Bills, notes, bonds
Portfolio diversifying might be used to reduce which of the following risks? A) Business risk B) Inflation risk C) Interest-rate risk D) Market risk
Business risk the rest are systematic risk and cant be diversified MIRI
All currency held by the public, including coins, checking accounts plus time deposits of less than $100,000, and money market mutual funds, is what economists define as A) M2 B) M1 C) M3 D) the money supply
M2
Your customer establishes the following position: Long 1 XYZ January 50 put at 2. You can correctly inform the customer that the maximum potential gain on the position is A) unlimited B) $5,200 C) $4,800 D) $200
$4,800
Under the rules, a penny stock is defined as an unlisted, security trading at less than A) $2.50 per share on 3 consecutive days B) $1 per share C) $2 per share on 3 consecutive days D) $5 per share
$5 per share
Which of the following are the most likely to make monthly or quarterly payments for the life the investor? Fixed annuity UIT Mutual fund Variable annuity
) I and IV
What is the maximum you are permitted to contribute to a ira under 50 -2000 -6000 -7000 -15000
6000
Question ID: 939774 Regarding different types of debt security maturities available to issuers, which of the following is accurate? A) A balloon maturity uses elements of both serial and term maturities. B) A serial maturity uses elements of both term and balloon maturities. C) No maturity types incorporate the elements of any other. D) A term maturity uses elements of both serial and balloon maturities.
A balloon maturity uses elements of both serial and term maturities.
During times when interest rates are rising, which of the following preferred are likely to pay a higher annual dividend? A) Participating B) Adjustable rate C) Callable D) Convertible
Adjustable rate
Which of the following would NOT require delivery of notice? A) Payment of a cash dividend B) A 2:1 stock split C) An interest payment on a corporate bond D) A rights offering
An interest payment on a corporate bond
Under the Uniform Securities Act, registrations must be renewed how frequently? A) Annually B) Biannually C) Quarterly D) Semiannually
Annually
The broker loan rate charged by banks is also known as A) discount rate B) the call loan rate C) federal funds rate D) prime rate
the call loan rate
A variable annuity's investment return each month is based on A) the performance of the separate account B) the performance of the insurance company's general account C) the assumed interest rate stated in the contract D) the contracts stated guaranteed monthly return
the performance of the separate account
The party who is short an option contract is known as A) the party with the right to exercise and receives the premium B) the writer and pays the premium C) the party with the right to exercise and pays the premium D) the writer and receives the premium
the writer and receives the premium
A hedge fund portfolio has been characterized as being highly leveraged. This means that A) commodities and currencies are included in the portfolio B) there is substantial borrowing or purchasing on margin C) there are substantial investments in international markets D) derivative products such as options are utilized
there is substantial borrowing or purchasing on margin
