1. An investment bank is late settling a futures trade. As a result their counterparty asks for collateral the next time they do a trade. What kind of risk is this an example of?. Single choice.

A. Liquidity

B Credit

C. Market

D. Reputational

2.

Two counterparties agree cash settlement of a oil call option. The strike price is $5.20, the spot price is $5.30 and the premium is $0.05. Which of the following describes how settlement would take place?. Single choice.

A. The holder will pay the writer $5.20 per gallon and the writer will supply the oil.

B. The holder will not exercise the option and nothing would change hands.

C. The writer will pay the holder 10 per gallon.

D. The holder will pay the writer 10 per gallon.

3.

What is amount of the next coupon payment for an investor holding a $10,000 Treasury 8% 2020 if it is trading at $10,034?. Single choice.

A. $400.00

B. $307.00

C. $704.00

D. $800.00

Please answer all these 3