题目内容
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[单选题]
An investor purchases a $1,000 face, 4.50%, semiannual coupon bond with seven years t
A.$72
B.$76
C.$80
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A.par.
B.a discount.
C.a premium.
更多“An investor purchases a $1,000…”相关的问题
第1题
An investor purchases a 5% coupon bond maturing in 15 years for par value. Immediately
after purchase, the yield required by the market increases. The investor would then most likely have to sell the bond at:
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第2题
If an institutional investor wants to borrow money for 30 days to finance a bond purc
hase, which of these is most likely to be the lowest loan rate available？
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A. Term repo rate
B. Call money rate
C. Broker loan rate
第3题
If Glanda is attempting to duplicate the effects of Mulroney’s proposed stock and option investment
Tess Mulroney, a veteran options investor, wishes to do some speculating and hedging with options, but isn’t sure the derivatives currently available are attractively priced. Before making any transactions, Mulroney puts her calculator to work to determine a fair price for the options.
First, Mulroney seeks to protect a large variable-rate investment. She has loaned $40 million to her nephew’s construction company. The loan is payable in one year, and the current interest rate is 7.6 percent. Based on data provided by her brokerage house, Mulroney believes interest rates will fall sharply over the next year, with a 70 percent chance of a decline to 5.9 percent and a 30 percent chance of a decline to 4.7 percent.
To protect her cash flows, Mulroney is considering the purchase of a 6.2 percent floor. Mulroney knows a banker who writes such options, but she must come to him with a price in mind.
Next on Mulroney’s list is call options on Merrill Materials stock. She has obtained the followingassumptions through a subscription options service:
The stock trades for $35 per share.
The chance of an upward movement over the next year is 60 percent.
The likely downward movement is 20 percent.
At-the-money calls currently sell for $4.75.
Despite her experience, Mulroney knows she always has more to learn. So she then reviews some technical material on options that she found on the Internet. Mulroney spends the next hour reading up on sensitivity factors related to option pricing.
Later that day, Mulroney meets with Ben Glanda, her financial adviser. He has prepared some investment recommendations and advice for Mulroney.
His first suggestion addresses a series of investments Mulroney was considering. She had proposed buying a stock, buying a European put option on the stock, and writing a call option. Glanda has proposed an alternative investment that will be simpler to make.
Next Glanda attempts to convince Mulroney to start using an alternate method for valuing her options. Glanda suggests using the Black-Scholes-Merton model because of its precision and ability to consider more factors, but Mulroney prefers the binomial model because it requires fewer assumptions.
Mulroney doesn’t like the Black-Scholes Merton model for the following reasons:
It does not work for American options.
It does not consider volatility of interest rates.
It does not reflect the compounding of returns.
It does not work for assets that generate cash flows.
Part 6)
If Glanda is attempting to duplicate the effects of Mulroney’s proposed stock and option investment, he should recommend the:
A) sale of a riskless bond.
B) purchase of a riskless bond.
C) purchase of a stock.
D) sale of a stock.
第4题
The value of the floor Mulroney seeks is closest to:
Tess Mulroney, a veteran options investor, wishes to do some speculating and hedging with options, but isn’t sure the derivatives currently available are attractively priced. Before making any transactions, Mulroney puts her calculator to work to determine a fair price for the options.
First, Mulroney seeks to protect a large variable-rate investment. She has loaned $40 million to her nephew’s construction company. The loan is payable in one year, and the current interest rate is 7.6 percent. Based on data provided by her brokerage house, Mulroney believes interest rates will fall sharply over the next year, with a 70 percent chance of a decline to 5.9 percent and a 30 percent chance of a decline to 4.7 percent.
To protect her cash flows, Mulroney is considering the purchase of a 6.2 percent floor. Mulroney knows a banker who writes such options, but she must come to him with a price in mind.
Next on Mulroney’s list is call options on Merrill Materials stock. She has obtained the followingassumptions through a subscription options service:
The stock trades for $35 per share.
The chance of an upward movement over the next year is 60 percent.
The likely downward movement is 20 percent.
At-the-money calls currently sell for $4.75.
Despite her experience, Mulroney knows she always has more to learn. So she then reviews some technical material on options that she found on the Internet. Mulroney spends the next hour reading up on sensitivity factors related to option pricing.
Later that day, Mulroney meets with Ben Glanda, her financial adviser. He has prepared some investment recommendations and advice for Mulroney.
His first suggestion addresses a series of investments Mulroney was considering. She had proposed buying a stock, buying a European put option on the stock, and writing a call option. Glanda has proposed an alternative investment that will be simpler to make.
Next Glanda attempts to convince Mulroney to start using an alternate method for valuing her options. Glanda suggests using the Black-Scholes-Merton model because of its precision and ability to consider more factors, but Mulroney prefers the binomial model because it requires fewer assumptions.
Mulroney doesn’t like the Black-Scholes Merton model for the following reasons:
It does not work for American options.
It does not consider volatility of interest rates.
It does not reflect the compounding of returns.
It does not work for assets that generate cash flows.
Part 5)
The value of the floor Mulroney seeks is closest to:
A) $236,571.
B) $228,023.
C) $233,494.
D) $231,029.
第5题
Which of Mulroney’s arguments against the Black-Scholes-Merton model is least compelling？ Her statement
Tess Mulroney, a veteran options investor, wishes to do some speculating and hedging with options, but isn’t sure the derivatives currently available are attractively priced. Before making any transactions, Mulroney puts her calculator to work to determine a fair price for the options.
First, Mulroney seeks to protect a large variable-rate investment. She has loaned $40 million to her nephew’s construction company. The loan is payable in one year, and the current interest rate is 7.6 percent. Based on data provided by her brokerage house, Mulroney believes interest rates will fall sharply over the next year, with a 70 percent chance of a decline to 5.9 percent and a 30 percent chance of a decline to 4.7 percent.
To protect her cash flows, Mulroney is considering the purchase of a 6.2 percent floor. Mulroney knows a banker who writes such options, but she must come to him with a price in mind.
Next on Mulroney’s list is call options on Merrill Materials stock. She has obtained the followingassumptions through a subscription options service:
The stock trades for $35 per share.
The chance of an upward movement over the next year is 60 percent.
The likely downward movement is 20 percent.
At-the-money calls currently sell for $4.75.
Despite her experience, Mulroney knows she always has more to learn. So she then reviews some technical material on options that she found on the Internet. Mulroney spends the next hour reading up on sensitivity factors related to option pricing.
Later that day, Mulroney meets with Ben Glanda, her financial adviser. He has prepared some investment recommendations and advice for Mulroney.
His first suggestion addresses a series of investments Mulroney was considering. She had proposed buying a stock, buying a European put option on the stock, and writing a call option. Glanda has proposed an alternative investment that will be simpler to make.
Next Glanda attempts to convince Mulroney to start using an alternate method for valuing her options. Glanda suggests using the Black-Scholes-Merton model because of its precision and ability to consider more factors, but Mulroney prefers the binomial model because it requires fewer assumptions.
Mulroney doesn’t like the Black-Scholes Merton model for the following reasons:
It does not work for American options.
It does not consider volatility of interest rates.
It does not reflect the compounding of returns.
It does not work for assets that generate cash flows.
Part 1)
Which of Mulroney’s arguments against the Black-Scholes-Merton model is least compelling？ Her statement about:
A) American options.
B) interest-rate volatility.
C) compounding returns.
D) cash flows.
第6题
Assuming the risk-free rate is 5.5 percent, call options on Merrill Materials are:
Tess Mulroney, a veteran options investor, wishes to do some speculating and hedging with options, but isn’t sure the derivatives currently available are attractively priced. Before making any transactions, Mulroney puts her calculator to work to determine a fair price for the options.
First, Mulroney seeks to protect a large variable-rate investment. She has loaned $40 million to her nephew’s construction company. The loan is payable in one year, and the current interest rate is 7.6 percent. Based on data provided by her brokerage house, Mulroney believes interest rates will fall sharply over the next year, with a 70 percent chance of a decline to 5.9 percent and a 30 percent chance of a decline to 4.7 percent.
To protect her cash flows, Mulroney is considering the purchase of a 6.2 percent floor. Mulroney knows a banker who writes such options, but she must come to him with a price in mind.
Next on Mulroney’s list is call options on Merrill Materials stock. She has obtained the followingassumptions through a subscription options service:
The stock trades for $35 per share.
The chance of an upward movement over the next year is 60 percent.
The likely downward movement is 20 percent.
At-the-money calls currently sell for $4.75.
Despite her experience, Mulroney knows she always has more to learn. So she then reviews some technical material on options that she found on the Internet. Mulroney spends the next hour reading up on sensitivity factors related to option pricing.
Later that day, Mulroney meets with Ben Glanda, her financial adviser. He has prepared some investment recommendations and advice for Mulroney.
His first suggestion addresses a series of investments Mulroney was considering. She had proposed buying a stock, buying a European put option on the stock, and writing a call option. Glanda has proposed an alternative investment that will be simpler to make.
Next Glanda attempts to convince Mulroney to start using an alternate method for valuing her options. Glanda suggests using the Black-Scholes-Merton model because of its precision and ability to consider more factors, but Mulroney prefers the binomial model because it requires fewer assumptions.
Mulroney doesn’t like the Black-Scholes Merton model for the following reasons:
It does not work for American options.
It does not consider volatility of interest rates.
It does not reflect the compounding of returns.
It does not work for assets that generate cash flows.
Part 4)
Assuming the risk-free rate is 5.5 percent, call options on Merrill Materials are:
A) $0.2083 undervalued.
B) $0.2263 undervalued.
C) $0.5201 overvalued.
D) $0.0502 overvalued.
第7题
The Black-Scholes-Merton model is designed to solve for:
Tess Mulroney, a veteran options investor, wishes to do some speculating and hedging with options, but isn’t sure the derivatives currently available are attractively priced. Before making any transactions, Mulroney puts her calculator to work to determine a fair price for the options.
First, Mulroney seeks to protect a large variable-rate investment. She has loaned $40 million to her nephew’s construction company. The loan is payable in one year, and the current interest rate is 7.6 percent. Based on data provided by her brokerage house, Mulroney believes interest rates will fall sharply over the next year, with a 70 percent chance of a decline to 5.9 percent and a 30 percent chance of a decline to 4.7 percent.
To protect her cash flows, Mulroney is considering the purchase of a 6.2 percent floor. Mulroney knows a banker who writes such options, but she must come to him with a price in mind.
Next on Mulroney’s list is call options on Merrill Materials stock. She has obtained the followingassumptions through a subscription options service:
The stock trades for $35 per share.
The chance of an upward movement over the next year is 60 percent.
The likely downward movement is 20 percent.
At-the-money calls currently sell for $4.75.
Despite her experience, Mulroney knows she always has more to learn. So she then reviews some technical material on options that she found on the Internet. Mulroney spends the next hour reading up on sensitivity factors related to option pricing.
Later that day, Mulroney meets with Ben Glanda, her financial adviser. He has prepared some investment recommendations and advice for Mulroney.
His first suggestion addresses a series of investments Mulroney was considering. She had proposed buying a stock, buying a European put option on the stock, and writing a call option. Glanda has proposed an alternative investment that will be simpler to make.
Next Glanda attempts to convince Mulroney to start using an alternate method for valuing her options. Glanda suggests using the Black-Scholes-Merton model because of its precision and ability to consider more factors, but Mulroney prefers the binomial model because it requires fewer assumptions.
Mulroney doesn’t like the Black-Scholes Merton model for the following reasons:
It does not work for American options.
It does not consider volatility of interest rates.
It does not reflect the compounding of returns.
It does not work for assets that generate cash flows.
Part 2)
The Black-Scholes-Merton model is designed to solve for:
A) volatility.
B) theta.
C) time to maturity.
D) option returns.
第8题
When an investment advisor attempts to determine an investor's risk tolerance,which factor would they be least likely to assess?（）
A.the investor's prior investing experience
B.the investor's degree of financial security
C.the investor's tendency to make risky or conservative choices
D.the level of return the investor prefers
E.the investor's feeling about loss
第9题
An investor buys a T-bill at a bank discount quote of 4.80 with 150 days to maturity.The investor's bond equivalent yield on this investment is（）.
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第10题
The investor should be aware of the limitations of the financial statement analysis（)
The investor should be aware of the limitations of the financial statement analysis()the annual report.
A. based on
B. basing on
C. base on
