4. Long Term Capital Management (LTCM) had a measured debt-to-equity ratio of 25 to 1. They short sold real liquid t-bond futures and bought real illiquid t-bond futures. How did Russias default on their debt affect LTCMs position?

Group of answer choices

Russias default influenced others to play it safe by buying real liquid US t-bonds, which is what LTCM shorted resulting in loss of money.

LTCM could buy more real-liquid t-bond futures after Russias default in order to prevent money from being lost.

LTCM participated in a smaller market therefore was not affected by Russias decision.

LTCM short sold real illiquid t-bond futures so Russias default benefited the profit made from the futures.

5. Soros purchased stocks in Hong Kong in hopes of?

Group of answer choices

Moving his trust off shores.

Buying Index Futures.

Shorting index futures.

Creating a bull market.

6. What caused the downturn, and eventual dissolution, of Long-Term Capital Management L.P.?

Group of answer choices

LTCM did not investments in Russian markets when they defaulted on their debts.

With the fall of the Soviet Union, Russia invested in the U.S. markets and destabilized the economy temporarily.

LTCM was lying to investors in an effort to inflate their stocks, which they then used to pay their employees in stock options.

The 1997 Russian default caused a significant rise in U.S. Treasury Bonds, which LTCM was significantly short selling.