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1. - Place the following actions in the correct chronological order for opening an options account. I. Receive the signed options agreement from the client

1. - Place the following actions in the correct chronological order for opening an options account.

I. Receive the signed options agreement from the client

II. Obtain financial information

III. Execute a transaction

IV. Receive approval of the account

a. I, II, IV, III

b. II, IV, III, I

c. II, IV, I, III

d. III, II, I, IV

2. An investor purchases 10 Eastman Kodak October 60 call options. One month later, Eastman Kodak stock splits 3 for 2. After the split, the investor will own:

a. 10 contracts for 100 shares, each with a $40 strike price

b. 10 contracts for 150 shares, each with a $40 strike price

c. 15 contracts for 100 shares, each with a $40 strike price

d. 15 contracts for 150 shares, each with a $40 strike price

3- List the following choices in the proper order for settling accounts in the event of a dissolution of a limited partnership.

I. General creditors

II. Limited partners

III. General partners

IV. Secured lenders

a. IV, I, II, III

b. I, IV, III, II

c. I, IV, II, III

d. IV, III, I, II

4. A drill manufacturer in the U.S. has a contract with a French company to deliver equipment in the near future. Payment will be made in euros. The U.S. manufacturer can protect itself against an adverse change in the value of the euro by:

a. Buying euros

b. Buying euro puts

c. Buying euro calls

d. Shorting euro puts

5. In a direct participation program, which of the following parties is subject to the MOST risk in a limited partnership?

a. The general partner

b. The limited partner

c. The Internal Revenue Service

d. The attorney who acts as a legal consultant to the limited partnership

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