32-40 please

Which of the following statements are true about open-end investment companies? 1. The price is based on NAV 2. The capitalization is not fixed. 3. Share price is determined by supply and demand. 4. Shares are traded on various exchanges. a) 1 only b) 1 and 2 c) 2 and 3. 32) d) e) 3 and 4. 1, 2, 3, and 4. 33) Using the table below, determine which of the call options (numbered 1 through 9) an option buyer would consider to be the most risky (assume it is January). Market Exercise Premium for Each Call Option Price Price $53 $50 $53 $55 $53 $60 April July October 1. $4.50 4. $6.00 7, $7.00 2. $3.00 5, $5.00 8. $6.50 3. $2.00 6. $4.00 9. $5.25 a) Option 1 b) Option 3 c) Option 7 d) Option9 Which of the statements concerning stock options is correct? 1. The writer of a put receives a premium. 2. The writer of a call receives a premium. 3. A writer of a call is bearish. 4. A writer of a put is bullish. a) 1 only. b) 2 only c) 1 and 3. 34) d) 1, 2, and 4. e) 1, 2, 3, and 4 35) With the same dollar investment, which of the following strategies can cause the investor to experience the greatest loss? a) Selling a naked put option. d) Buying a call option b) Selling a naked call option. c) Writing a covered call. e) Buying the underlying security. 36) Which of the following are characteristics of closed-end investment companies? 1. Shares of closed-end investmen 2. Similar to stocks, shares of closed-end investment companies generally trade on nt companies are generally redeemable by the fund. exchanges Closed-end investment companies will often issue additional shares to raise more capital for the fund. 3. a) 1 only. b) 2 only. c) 3 only. d) 1 and 2. e) 1,2, and 3. lex has a put If the option ha option with an exercise price of $50. The stock is currently selling for $47. s a premium of $4 and 3 months until expiration, what is the intrinsic value? d) (7) c) (4) 38) Mutual funds often have stated objectives indicating what type of fund the investor is choosing. Which of the following types of funds generally spread investor's money across equity markets, bond markets, and money markets? Moreover, as market conditions change, the amount of money invested by the fund in each sector will change a) Sector funds. b) Growth and income funds c) Balanced funds d) Asset allocation funds. e) Growth funds Mike likes a stock and expects it to significantly increase in value fairly soon. He is expecting a bond to mature in 2 months and doesn't want to miss out on any appreciation on the stock while waiting for the funds to become available. Which of the following actions should he take? a) Buy a put b) Sell a call c) Sell a straddle 39) d) e) Sell a put. Buy a call If you own a stock, what is the safest investment strategy in a market that is expected to be flat for several months? a) Buy a straddle. b) Sell a call c) Sell a straddle 40) d) Buy a call e) Buy a put