QUESTION 1 1. An American call option grants the holder the right to: sell the underlying security at the strike price on or before the expiration date. sell the underlying asset at the strike price only on the expiration date. buy the underlying asset at or below the exercise price on or before the expiration date. buy the underlying asset at the exercise price only on the expiration date. buy the underlying security at a stated price on or before the expiration date. 0.5 points QUESTION 2 1. Options expire on the _____ of the expiration month. last trading day 3rd Friday last Friday Saturday following the 3rd Friday Saturday following the last Friday 0.5 points QUESTION 3 1. Which one of the following is a derivative asset? common stock option contract government bond preferred stock corporate bond 0.5 points QUESTION 4 1. Use the following bond quotes to answer this question:

What is the current price of a $1,000 face value Alpha Industrial bond? $986.67 $991.04 $994.02 $998.23 $1,000.00 0.5 points QUESTION 5 1. You purchased four call option contracts with a strike price of $25.00 and a premium of $1.25. At expiration, the stock was selling for $26.80 a share. What is the total amount it cost you to acquire your shares? $8,620 $9,060 $10,500 $11,860 $12,400 0.5 points QUESTION 6 1. Use the following bond quotes to answer this question:

The Talliru Company bond pays interest semi-annually. You own eight of these bonds. What is the amount you will receive as your next interest payment? $76.00 $228.00 $190.00 $254.00 $304.00