1) It is January 10, 2020. The price of a Treasury bond with a 10% coupon paid semiannually that matures on October 1, 2020 is quoted as 103-55. What is the cash price?

Select one:

a. The quoted price is 104.718 and the cash price 107.5

b. The quoted price is 107.5 and the cash price 104.718

c. The cash price will be equal to the quoted price

d. The cash price 104.718

2)

When you exercise a call option, you have to:

Select one:

a. SELL the underlying asset and RECEIVE the agreed price

b. SELL the underlying asset and PAY the agreed price

c. BUY the underlying asset and PAY the agreed price

d. BUY the underlying asset and RECEIVE the agreed price

3)

The maximum loss you can suffer if you short a call option:

Select one:

a. The loss is limited to the strike price.

b. The unlimited loss or the stock price at the exercise minus the strike price.

c. None of these is correct.

d. The loss is limited to the call premium.

e. The unlimited loss or the stock price at the exercise

4)

A stock option is on a February cycle (Feb, May, Aug, Nov), what options trade on June 5th:

Select one:

a. On June 5th options trade with expiration months of June, August, November and February

b. On June 5th options trade with expiration months of June, July, August and November

c. On June 5th options trade with expiration months of July, August, November and February

d. On June 5th options trade with expiration months of July, August and November