1. What is an ADR?

	It is a receipt that represents ownership in shares of a foreign company.
	It is a receipt that represents ownership in shares of a domestic company.
	It is a receipt that represents ownership in shares of a foreign mutual fund tied to a specific country
	It is a receipt that represents ownership in bonds of a foreign country.

2. Which principle says to recognize the value of options contained in derivatives?

	The Principle of Valuable Ideas
	The Capital Market Efficiency Principle
	The Options Principle
	The Principle of Comparative Advantage

3. Which of the following statements is FALSE?

	In the B-S Model, ln is the natural (base e) logarithm function.
	In the B-S Model, time is expressed in years until the option expires.
	In the B-S Model, S is the current value of the underlying asset.
	In the B-S Model, k is the riskless APR with continuous compounding.

4. Suppose you buy a futures bond contract from a seller, which specifies delivery in six months at a price of 96 (that is, 96% of the face amount). Which of the below statements is TRUE?

	You are long the contract, and the seller is short the contract.
	You are short the contract, and the seller is long the contract.
	Both you and the seller are long the contract.
	Cannot tell

Which of the following statements is FALSE?

	The lessor is a creditor who can force the lessee into bankruptcy.
	Lease analysis is similar to bond refunding analysis.
	Leasing analysis is always complex when it comes to deciding if a firm should lease or buy.
	Spot trades involve the purchase and sale of a currency for 'immediate' delivery, which actually occurs two business days after the trade takes place.