1a. What is a long forward position?

a. The trader is agreeing to sell the underlying asset for a certain price at a certain time in the future.

b. The trader is agreeing to restrict the underlying asset for a certain price at a certain time in the future.

c. The trader is agreeing to hold the underlying asset for a certain price at a certain time in the future.

d. The trader is agreeing to buy the underlying asset for a certain price at a certain time in the future.

1b. Which of the following is NOT a theory of the term structure?

a. Liquidity preference theory

b. Maturity preference theory

c. Market segmentation theory

d. Expectations theory

1c. In 2008 the TED spread reached a high of...

a. About 550 basis points

b. About 250 basis points

c. About 150 basis points

d. About 450 basis points

1d. Which of the following were introduced before the credit crisis that started in 2007?

a. Basel III

b. Dodd-Frank

c. Requirements for living wills

d. Basel II