1. A hedger in the financial futures market a. seeks a position in the spot market to offset the price risk, which exists in the futures market. market. c. seeks to offset the price risk in its spot market position with the equal but d will always short financial futures to create a perfect hedge. b.will purchase financial futures if holding financial assets in the spot opposite price risk of the futures position. 2. All but one of the following is a bank asset. a, fed funds purchased b. loans c. deposits in other banks d. government securities 3. In a bear (down) market, which option positions make money? i. buying a call ii writing a call ii buying a put iv writing a put a. iand i. b. i and ii c. ii and iii d. i and iv e. ii and iv What action would the holder of a maturing put option take if an option which cost $3.50, had a strike price of $60, and the market value of the stock was $55"? 4. a. b. c. let the option expire unexercised exercise the option request that the $300 be returned none of the above d. 5. Major liabilities for banks include all except A) Large Denomination CDs B) Provision for Loan Loss C Deposits D MMDA accounts Long Term Debt