Q1

Q2

EMH states that:

I. The only viable form of market participation is to invest actively by timing the market.

II. The markets discount all information instantaneously.

III. All market participants react rationally and in the same manner to all new information.

IV. All market participants react instantaneously to all new information.

A.

Only II, III, and IV are correct.

B.

Only II and III are correct.

C.

Only I, II, and IV are correct.

D.

All are correct.

Q3

You are interested in short selling 400 shares of Nice Company Limited. The initial margin is 55% and the maintenance margin is 35%. You sell the shares at $65 per share.

At what price (round up to two decimal places) will you get a margin call? show your working.

Be careful that those questions that require inputting your own answers, the number of decimal places required should follow the convention. For example, for exchange rate, it should be 0.0001, except for JPY and KRW (0.01). For money, dollar amount, it should be $0.01 and for percentage, it should be 0.01% Please stick to these rules, otherwise your answers will be Wrong.

Refer to the data in Table 1 below. Suppose they are the current FX market rates quoted by a large bank A bank customer wants to sell 2 Mio CAD against USD, the rate the client deals at is Refer to the data in Table 1 below. Suppose they are the current FX market rates quoted by a large bank A bank customer wants to sell 2 Mio CAD against USD, the rate the client deals at is