Question
You think that the price of a share of stock in Amazon will decline. Which of the following would offer the greatest possible return if
You think that the price of a share of stock in Amazon will decline. Which of the following would offer the greatest possible return if the price of a share of stock in Amazon does decline is:
a. Buying a call option in Amazon stock
b. Selling a call option in Amazon stock
c. Buying a put option in Amazon stock
d. Selling a put option in Amazon stock
e. None of the above would benefit from the price of Amazon stock declining
The price quote for a T-bond futures contract is in dollars and 32nds as a percent of face value. The face value of a T-bond contract is $100,000, and the current quote is 13616. If you purchase a T-bond futures contract, you agree to:
a. Buy $100,000 of T-bonds for $136,160
b. Buy $100,000 of T-bonds for $136,500
c. Sell $100,000 of T-bonds for $136,160
d. Sell $100,000 of T-bonds for $136,500
e. It is impossible to tell from the information given what you would be agreeing to.
Which of the following is the most comprehensive stock index?
a. Dow Jones Industrial Average
b. S&P 500
c. NYSE Composite Index
d. NASDAQ Composite Indes
e. Wilshire 5000 Index
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