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Felicia purchased an option which she can exercise anytime within the next six months.Which type of option did she purchase?


A) market-ready
B) portable
C) daily
D) European
E) American

F) A) and B)
G) A) and C)

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The Sarbanes-Oxley Act of 2002 requires firms to report ESO grants within how many days of the grant?


A) 2 calendar days
B) 2 business days
C) 7 calendar days
D) 30 business days
E) 45 calendar days

F) A) and E)
G) C) and E)

Correct Answer

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You own a July $15 call on ABC stock.Assume today is April 20 and the call has zero intrinsic value.Which one of the following best describes this option?


A) worthless
B) unfunded
C) expired
D) in-the-money
E) out-of-the-money

F) C) and D)
G) A) and B)

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Julie opted to exercise her August option on June 20th and as a result received $2,500 for the sale of her shares.Which one of the following did Julie own?


A) warrant
B) American call
C) American put
D) European call
E) European put

F) B) and C)
G) A) and E)

Correct Answer

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A convertible bond has a face value of $1,000 and a conversion price of $12.50.The bond has a 6 percent coupon,pays interest semi-annually,and matures in 12 years.Similar bonds are yielding 9 percent.The current price of the stock is $13.40 per share.What is the straight bond value?


A) $782.57
B) $781.82
C) $827.74
D) $832.09
E) $843.47

F) A) and B)
G) A) and C)

Correct Answer

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Which of the following grants its owner the right to purchase an asset at a stated price? I.American call II.European call III.American put IV.European put


A) I only
B) I and II only
C) I and III only
D) II and IV only
E) III and IV only

F) None of the above
G) C) and D)

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