Which of the following is the most common way of ending a futures contract? A closing contract Physical delivery Cash settlement An exchange for Physicals D Question 3 A portfolio which has a delta value of 0.33 is: a. a bullish portfolio b. a neutral portfolio c. a bearish portfolio d. a high volatility portfolio Question 4 12.5 pts Suppose that the July gold futures has increased $4 by today's close. The holder of a short position in three contracts (contract size = 100 oz.): a. will have her margin account increase by $400 today b. will have her margin account decrease by $1,200 today c. will have her margin account increase by $1,200 today nothing will happen now, she will be rewarded in July. D Question 2 12.5 pts Which of the following statements is INCORRECT? VIX is also known as the "fear index" because it has become a widely watched barometer of stock market volatility, reflecting investor anxiety. The VIX tends to increase during financial crises, The VIX should be very close to the value of historical volatility of at-the-money S&P 100 Index The VIX is a type of implied volatility Question 5 12.5 pts Suppose that a futures trader has deposited the initial margin of $16,000 in her brokerage account. The maintenance margin is 75 percent. The value of the account falls to $10,500. The account holder has to come up with a variation margin of: $1,500 $4,000 $5,500 $7,500