When the market price is greater than the exercise price of a call option, the call option is said to be: *

At-the-money.

Out-of-the-money.

In-the-money.

If F0(T) > FV(S0), an arbitrageur would: *

conduct a reverse carry arbitrage strategy.

sell the forward contract and purchase the underlying.

purchase the forward contract and sell the underlying short.

What should be the price of a futures contract on a treasury bond that have a spot price of 990, and will expire after 4 years, and a risk-free rate of 6%: *

1,112

1,090

1,050

Salma pays $100 per share to buy 500 shares of a non-dividend-paying firm. The purchase is done on margin, and the leverage ratio at purchase is 3.0X. Three months later, She sells the shares for $90 per share. Ignoring transaction costs and interest paid on the margin loan, Salma's 3-month return was closest to: *

-30%.

-40%.

-10%.

ABC Stock value on the expiration date of call option is $88.50. The call purchased with a $2.20 premium & an exercise price of $85, what is the breakeven price? *

$88.50.

$87.20.

$86.30.

Mohamed purchased on margin account, 200 shares of FAWRY stock at a price of 3.5 L.E. per share. The margin requirement was 50%. The stock price has increased to 4.2 L.E. per share. What the return of this position during the holding period? *

30%

10%

40%

A buy order for one million shares with a limit price of 62, and an instructions of good-till-cancel. The good-till-cancel instruction is most accurately referred to as a(n): *

Clearing instructions.

Execution instructions.

Validity instructions.