20) You purchased 500 shares of SLG, Inc. stock at a price of $43.70 a share. You then purchased put options on your shares with a strike price of $40.00 and an option premium of $0.90. At expiration, the stock was selling for $47.80 a share. You sold your shares on the option expiration date. What is your net profit or loss your transactions related to SLG, Inc. stock?

A) $1,650

B) $1,250

C) $1,600

D) $2,150

E) $2,300

21) You own 300 shares of stock which you would like to have the right to sell at $40 a share. The 40-call option is quoted at $0.35 bid, $0.40 ask. The 40 put is quoted at $0.45 bid, $0.50 ask. How much will it cost you to obtain the right to sell all your shares at $40 a share?

A) $135

B) $50

C) $150

D) $105

E) $75

22) You own one futures contract on gold that you purchased at a quoted price of 1,448.5. The current price quote is 1405.5. The contract size is 100 ounces and the quotes are expressed in dollars and cents per ounce. What is your current profit or loss on this investment?

A) -$43.00

B) -$912.00

C) -$4,300.00

D) $912.00

E) $4,300.00

23) Which one of the following describes an investment company that generally has an unrestricted investment strategy and is not accessible to the public?

A) mutual fund

B) open-end fund

C) closed-end fund

D) exchange-traded fund

E) hedge fund

24) Which one of the following statements correctly relates to closed-end funds?

A) Closed-end funds must sell at the NAV or above.

B) The number of shares outstanding changes daily as shares are sold and repurchased.

C) Shares in closed-end funds must be held until the funds mature.

D) Once a fund closes, a new investor is unable to purchase shares in that fund.

E) Shares of closed-end funds trade just like stocks.