1.Which of the following duties is performed by the clearinghouse? (Points : 3.84)

a. holding margin deposits

b.negotiating prices between buyers and sellers

c.setting prices for securities

d.lending money to meet margin requirements

e.none of the above

2.

A call option gives the writer (Points : 3.84)

a.the obligation to buy something b.the right to sell something c.the right to buy something d.the obligation to sell something e.none of the above

3.

You are the purchaser of a call option with $10 premium and $120 exercise price. You bought this option when the stock price was $130. If the stock price now is $120, what is the net cash flow to you if you exercise? (Points : 3.84)

a.-$5 b.$5 c.$10 d.-$10 e.0

4.You are the purchaser of a put option where the premium is $6 and exercise price is $52. You bought this option when the stock price was $50. If the stock price is $54 right now (and you're at expiration), what is your net cash flow from this investment? (Points : 3.84)

a.negative $4 b.negative $6 c.$4 d.negative $2 e.$2

5.The maximumloss of the purchaser of a put option with a premium of $3 and exercise price of $120 would be: (Points : 3.84)

a.unlimited b.$120 c.$117 d.$3 e.$123