10205047
Questão 1
Questão
A sell MIT order is activated if the price is traded at or above the order price:
Responda
- True
- False
Questão 2
Questão
A currency speculator believes that the dollar has probably topped out, relative to
the Swiss Franc, and will weaken as inflation in the U.S. resumes. The speculator
decides to buy 2 March Swiss Franc futures (each 125,000 Francs) at $.7850/
franc. As the speculator expected, the dollar weakens. In early February, the
dollar begins to make a correction. The speculator decides that it is time to
liquidate, selling 2 futures at $.7975/franc. What is the result of the speculator's
trade?
Responda
-
A gain of $1,562.50
-
A gain of $9,765.63
-
A gain of $6,250.00
-
A gain of $3,125.00
Questão 3
Questão
Research shows that "thin" futures markets (those unable to attract sufficient
levels of speculation) experience greater price volatility than markets in which
there is active speculation:
Responda
- True
- False
Questão 4
Questão
In the various broad-based stock index futures markets, delivery is made
Responda
-
With common stocks approved by the exchange
-
By cash settlement
-
With common stocks approved by the exchange or by cash settlement
-
By stock transfer certificates
Questão 5
Questão
Commonly, spread trades involve the simultaneous purchase and sale of two
different, but closely related, futures contracts:
Responda
- True
- False
Questão 6
Questão
If your customer took a 3 contract short position in long-term U.S. Treasury Note
futures at a price of 112-3/32 ($100,000 per contract) and offset at 106-12/32,
how much would he have made or lost on the trade
Responda
-
Lost $5,718.75 per contract
-
Made $5,718.75 per contract
-
Lost $571.88 per contract
-
Made $571.88 per contract
Questão 7
Questão
Cash forward contracts differ from futures contracts in that they are:
Responda
-
Non-standardized private contracts not subject to the rules and regulations of a futures exchange
-
Not subject to federal regulation
-
Not priced in open, competitive bidding
-
All if the above
Questão 8
Questão
Anticipating a greater than usual seasonal decline in the demand for gasoline, a
• speculator takes a short position of 5 March contracts (each for 42,000 gallons) at
$1.2610/gallon at the end of November. In late February, gasoline futures prices
have declined to $1.2405; however, gasoline demand seems to be stirring again,
and the customer places a stop order to buy at $1.2410 GTC. Several days later
the order is filled at $1.2412. As a result of the trade, the speculator has a gain of:
Responda
-
$4,305
-
$,4200
-
$4,147
-
$4,158
Questão 9
Questão
A put option is in-the-money when the underlying futures is priced above the
strike price of the option:
Responda
- True
- False
Questão 10
Questão
A manufacturer uses copper in its products and wishes to use options to protect
its raw materials inventory of copper against a decline in price. To hedge, it should
buy puts:
Responda
- True
- False
Questão 11
Questão
A speculator buys four March T-Bond futures contracts at 110-04 ($100,000 per
contract). Later, he liquidates his position at 110-24. Before commissions, what is
the result of the trade?
Responda
-
A loss of $500
-
A gain of $625
-
A gain of $2,500
-
A loss of $2,000
Questão 12
Questão
Your customer has researched the Live Cattle futures market and has identified a
spread opportunity. October Live Cattle are trading at a $.03 premium over
August Live Cattle. Believing that the spread will narrow, your customer would
spread by buying August Live Cattle and selling October Live Cattle
Responda
- True
- False
Questão 13
Questão
To offset a short futures contract means to sell futures against the purchase of
the cash commodity:
Responda
- True
- False
Questão 14
Questão
A customer placing a limit order is entitled to a fill ifthe market touches the limit
price after an order is entered. If the fill is not received, the broker is responsible
for his failure to fill the order:
Responda
- True
- False
Questão 15
Questão
For stock index futures hedges, basis is:
Responda
-
The relationship of the individual stock to the stock index futures
-
The relationship of the stock index to the individual stock
-
The relationship of the individual stock to the stock index
-
The relationship of the stock index to the stock index futures
Questão 16
Questão
Your customer has entered a spread by buying the nearby futures month and
selling the more distant month. He will profit as the spread narrows:
Responda
- True
- False
Questão 17
Questão
A futures hedge may not give full protection against an adverse price change
because of all of the following except:
Responda
-
Cash and futures prices may not change by the same amount
-
The market may be thin
-
Basis may change
-
Cash and futures prices may not move in the same direction
Questão 18
Questão
If a trader on the New York Board of Trade purchased a cotton futures contract
at 52.13¢/lb. (50,000 lbs. per contract) and later offset the position, selling one
contract at 55.65¢/lb., and commissions are $58.00 per contract, what is the
trader's profit on the trade after paying commissions:
Responda
-
$528
-
$1,760
-
$1,818
-
$1,702
Questão 19
Questão
When determining the price level at which to place a stop order (either to stop
losses or protect profits), which of the following is the key factor:
Responda
-
The current volume in the market
-
The current open interest in the market
-
The current volatility of the market
-
The number of speculators trading in the market
Questão 20
Questão
The customer deposits $2,250 of margin and takes a long position in wheat at
$3.11 per bushel (5,000 bushels per contract). Assuming the margin on wheat is
$.15 per bushel, what percentage of the market value of the underlying commodity
does the customer's margin represent:
Responda
-
14.47%
-
8.42%
-
4.82%
-
4.47%
Questão 21
Questão
T-Bond prices have been on the decline and seem ready for a reversal. Your
customer decides to enter a bull spread, buying 3 March T-Bond futures when the
contract is at 109-08, and selling 3 September T-Bond futures at 107-07 ($100,000
principal amount each futures contract). Later, your customer unwinds the spread
with March futures prices at 110-11 and the September at 108-04. What is the
result of the trade?
Responda
-
A loss of $I,093.75
-
A gain of $187.50
-
A loss of $2,718.75
-
A gain of $562.50
Questão 22
Questão
The soybean market is trading at the following spreads: September 625.25,
November 624.00, January 630.75, March 637.75, May 646.50. Given these
prices, which of the following spreads is likely to be most profitable?
Responda
-
Sell the September and buy the November
-
Sell the March and sell the May
-
Buy the March and sell the May
-
Sell the January and buy the March
Questão 23
Questão
Which of the following tends to have the least impact on commodity storage
costs?
Responda
-
The prices of substitute goods
-
The rate of inflation
-
Interest rates
-
Insurance costs
Questão 24
Questão
You have a client who sells an October 405 put on Gold futures and purchases a
December 405 put on Gold futures. This is an example of a:
Responda
-
Strangle
-
Calendar spread
-
Bull spread
-
Put straddle
Questão 25
Questão
A U.S. copper exporter, selling copper to Switzerland, intends to receive his
payment in Swiss Francs. He anticipates a strengthening of the dollar relative to
the Franc. The exporter would hedge against the possible exchange rate loss by
selling Swiss Franc futures:
Responda
- True
- False
Questão 26
Questão
On July 15, a soybean farmer's local cash market price for beans is $6.15 per
bushel. November soybean futures are $6.21 per bushel (5,000 bushels per
contract). He decides to fully hedge his beans. His order is filled at $6.2150 per
bushel. On December 1, the soybean farmer is ready to sell his beans. The best
price available in the local market is $6.00 per bushel. On the same date, the
November futures are trading in the $6.10-$6.11 per bushel range. He lifts his
hedge, receiving confirmation of his fill at $6.1050 per bushel. Ignoring transaction
costs, but accounting for the effects of both cash and futures price movements,
what is the soybean farmer's gross income per bushel received for his soybeans?
Responda
-
$6.26
-
$6.11
-
$6.00
-
$5.89
Questão 27
Questão
Your customer takes a short position in 4 December 30-Day Fed Funds contracts
at 98.03 ($5,000,000 principal amount per contract). Later, he liquidates
at 98.56. Before considering commission costs, the result of the trade is:
Responda
-
A loss of .53,53 basis points, or $2,208.51
-
A gain of .53,53 basis points, or $2,208.51
-
A loss of .53,53 basis points, or $8,834.04
-
A gain of .53,53 basis points, or $8,834.04
Questão 28
Questão
Assume margin for com futures on the Chicago Board of Trade is $.20 per bushel
(5,000 bushels per contract). If a trader has per contract commissions of $40, and
goes long 3 contracts at $2.45, what is his percentage of profit on his margin
deposited after commissions, assuming he covers his position at $2.71 ?
Responda
-
42%
-
126%
-
378%
-
86%
Questão 29
Questão
In futures hedging, it is essential that the futures position taken is:
Responda
-
Larger than but the same risk existing in the cash market
-
Smaller than but opposite the risk existing in the cash market
-
Approximately equal in size and has the opposite risk existing in the cash market
-
Approximately equal in size and has the same risk existing in the cash market
Questão 30
Questão
To offset the sale of a futures call option, it would be appropriate to buy a put with
the same expiration and strike price:
Responda
- True
- False
Questão 31
Questão
hogs in the middle of April, hedging in April lean hog futures contracts (40,000
pounds per contract) at 60.50¢/lb. when the local cash market price is 58.90¢/lb.
On April 12,he buys hogs when the local cash price is 63¢/lb. and lifts his hedge
at 63.80¢/lb. As a result of the hedge, the meat packer's cost for the live hogs
was:
Responda
-
$23,560
-
$117,800
-
$23,880
-
$119,400
Questão 32
Questão
Which of the following futures options positions is linked most closely to the short
futures hedge:
Responda
-
Short a put
-
Long a call
-
Long a put and short a call
-
Long a call and short a put
Questão 33
Questão
The S&P 500 index futures can properly be used to hedge long securities positions
when:
Responda
-
The securities being hedged are preferred stocks --
-
The hedger wants to change some of his unsystematic risk into a general market risk
-
The hedger liquidates his securities position and adds to his portfolio by going short a S&P 500 index futures contract in a bear market
-
Along S&P 500 index futures position is held in the hedger's portfolio
Questão 34
Questão
A dealer has a large inventory of gold coins and bars, and is considering using
COMEX gold futures options to protect against declining gold prices. Which of
the following positions would be most appropriate?
Responda
-
Selling in-the-money calls
-
Buying in-the-money puts
-
Selling deep out-of-the money calls
-
Buying deep out-of-the money puts
Questão 35
Questão
Which of the following scenarios would be an appropriate situation for hedging
with the purchase of a Eurodollar put option?
Responda
-
A pension fund holding bonds, to protect against a decline in bond prices
-
An international corporation expecting to issue commercial paper, to protect against a rise in interest rates
-
A S&L making mortgages, to protect against declining interest rates
-
A municipality anticipating the issuance of bonds, to protect against rising interest rates
Questão 36
Questão
Spread trading always has a lower risk of loss than naked futures trading, and
therefore has lower margin requirements:
Responda
- True
- False
Questão 37
Questão
An order reading, "Buy 3 September British Pound at $1.7980, sell 3 December
British Pound at $ 1.8170 Stop" is an example of:
Responda
-
A straight spread order
-
A stop spread order
-
A bear spread order
-
A straight stop order
Questão 38
Questão
A mortgage banker begins to pool mortgages, which he intends to sell in
the secondary mortgage market in 4 months. He decides to hedge using
the CBOT T-Bond futures You would recommend that he:
Responda
-
Sell T-Bond futures
-
Buy T-Bond futures
-
Sell T-Bond futures and buy cash T-Bonds
-
Buy T-Bond futures and sell cash T-Bonds
Questão 39
Questão
To buy a straddle in COMEX gold futures options, a customer would:
A.
B.
C.
D.
Responda
-
Sell a February 400 call and buy a February 405 put
-
Sell a February 400 call and sell a February 405 put
-
Buy a February 400 call and sell a February 400 put
-
Buy a February 400 call and buy a February 400 put
Questão 40
Questão
Delivery of physical commodities takes place for less than 3% offutures contracts;
however, the ability to deliver is necessary:
Responda
-
To keep cash and futures prices in alignment
-
To comply with NFA regulations
-
To make commodities available for export
-
All of the above
Questão 41
Questão
When the U.S. dollar strengthens, importers in foreign countries receive more
dollars for their domestic currency, making importing U.S. goods more attractive:
Responda
- True
- False
Questão 42
Questão
If your customer places an order to buy 3 Mar. Eurodollars at 97.72 stop 97.86
limit GTW, the order is:
Responda
-
Guaranteed to be filled at the limit price or lower
-
Guaranteed to be filled above the limit price
-
Guaranteed to be filled, but not necessarily at the limit price
-
Not guaranteed to be filled
Questão 43
Questão
You have a customer who decides.to sell 3 July 50¢ cotton calls and buy 3 July
51 ¢ cotton calls. Such a trading strategy is a:
Responda
-
Butterfly spread"
-
Vertical spread
-
Horizontal spread
-
Diagonal spread
Questão 44
Questão
Generally, as price volatility in the futures market increases, the potential leverage
the market offers increases:
Responda
- True
- False
Questão 45
Questão
On November 1, a meatpacker decides to hedge his needs for live cattle for
delivery in the middle of February. He hedges on November 1 in live cattle
futures (40,000 pounds each contract), at the prices below:
Cash Price Live Cattle Futures
Nov. 1 83.90¢llb. 82.10¢llb.'
Dec.10 83.02¢llb. 81.85¢llb.
Jan. 14 85.1O¢llb. 83.12¢llb.
Feb. 10 88.25¢llb. 89.55¢llb .
On February 10, he buys the required live cattle in the local cash market and lifts
his hedge at the above futures price. Through the hedge, he:
Responda
-
A. Gains 3. 1O¢/lb.
-
B. Gains 7.45¢llb.
-
C. Gains4.35¢llb.
-
D. Gains 1.30¢llb
Questão 46
Questão
On August 4, your customer took a long position in one US. Treasury Bond
futures contract at 110-09 ($100,000 per contract). By August 15, T-Bond futures
have risen to 111-21, and you and your customer decide to place a sell stop order
at 1100-30to protect profits. On August 20, the market weakens and the stop order
is activated and filled at 110-29. As a result of this trade, your customer has:
Responda
-
A. Lost $625.00
-
B. Gained $625.00
-
C. Gained $6i6.25
-
D. Lost $1,375.00
Questão 47
Questão
You handle an account for a film manufacturer. The firm had hedged a two month
silver supply, and to date has added 7.8¢/troy oz. to its projected profits due to the
hedge. At this time, you would most prudently advise your customer to:
Responda
-
A Continue with the current hedge
-
B·:- Increase its long hedge
-
C. Liquidate the hedge
-
D. Buy a call to hedge the futures position
Questão 48
Questão
An order stipulating that it be filled immediately when received by the floor
broker, otherwise it is canceled, is called:
Responda
-
A. A contingent order
-
B. A OCO (one cancels other) order
-
C. A FOK (fill or kill) order
-
D. A GTW order
Questão 49
Questão
Your customer enters a MarchlMay long spread in coffee when March coffee is
at 76.05¢/lb. and May coffee is at 78.00¢/lb. (37,500 lbs. per contract). Later, the
spread narrows to March 77.55¢ and May 79.05¢. Before commission costs, the
customer's result from a spread on 2 contracts is:
Responda
-
A. A loss of$337.50
-
B. A gain of $337.50
-
C. Again of $168.75
-
D. A loss of$168.75
Questão 50
Questão
In June, a corporate treasurer completed plans to sell $100,000 of corporate bonds
in December. AAA corporate bonds are paying 6.2%. The December T-Bond
futures are at 5.45%. He decides to hedge. His best strategy would be:
Responda
-
A. Sell December T-Bill futures and buy 6-month T-Bills
-
B. Buy December T-Bond futures
-
C. Buy 6-month T-Bills in the cash market
-
D. Sell December T-Bond futures
Questão 51
Questão
Which of the following terms means something different from the others
Responda
-
A. Cover your position
-
B. Even up
-
C. Go short
-
D. Liquidate
Questão 52
Questão
Youhave a customer who is a securities dealer. He is currently holding $3 million
in 5~% long-term T-Bondsmaturing in 2002. Anticipating rising rates, the portfolio
manager wishes to hedge using Bond futures options, which reflect an 6%
coupon ($100,000 per contract). Ifthe bond conversion factor is .9490 to
adjust for the difference between the held coupons and the 6% coupons, how
many options should he use to provide a weighted hedge?
Responda
-
A. 29 calls
-
B. 29 puts
-
C. 28 calls
-
D. 28 puts
Questão 53
Questão
Elasticity of supply refers to:
Responda
-
A. The amount the supply of a commodity changes when its demand changes
-
B. The amount the price of a commodity changes when its supply changes
-
C. The amount the price of a commodity changes when its demand changes
-
D. The amount the supply of a commodity changes when its price changes
Questão 54
Questão
In the daily clearing and settlement of futures options, gains and losses are
calculated on the change in:
Responda
-
A. Strike prices
-
B. Premiums
-
C. Underlying futures prices
-
D Both premiums and underlying futures prices
Questão 55
Questão
Some limit orders in futures are entered with the notation "OB" indicating that the
order should be filled at the limit price or better. Using this notation is not ordinarily
necessary-most brokers will fill orders at the best possible price; however,
there are some instances where the notation "OB" is essential. In which of the
following situations would the notation be required?
Responda
-
A. On an order to buy 3 May Crude oil contracts at $44.21 per barrel entered when the current price is $44.15 /
-
B. On an order to sell 2 March Com at $2.38 per bushel entered when the ~ current price is $2.37~
-
C. On an order to buy one June S&P 500 at 1028.5 entered when the current price is 1029.95
-
D None of the above
Questão 56
Questão
All of the following characteristics of a commodity are essential to the viability of
the futures market, except:
Responda
-
A Broad-based production
-
B Storability
-
C. Accessible price information
-
D. Definable quality standards
Questão 57
Questão
On March 1, you and your customer discuss possible spread opportunities in
options on Euro FX futures. Both you and he generally expect the Euro to decline
during the next 2 months, He is interested in the possibility of a bear call spread.
Currently, the December futures are at $1.2050. The December 12050 call
carries a premium of 2.70¢/€. The December 12000 call carries a premium of
2.97¢/€. He decides to enter a spread buying 4 December 12050 calls and selling
4 December 12000 calls (125,000 per option). Entering his spread order, you
know in advance that your customer's maximum net loss is:
Responda
-
A. $337.50
-
B. $287.50
-
C $1,350.00
-
D $1,150.00
Questão 58
Questão
Your customer shorts 2 May world sugar futures at 8.16¢ /lb. (112,000 lbs. per
contract). Ifthe minimum initial speculative margin is $600 per contract, with a
maintenance margin level of $500, at what price level and in what amount would
the customer be required to deposit additional margin money:
Responda
-
A. At 8.07¢, $100.80 in additional margin would be required
-
B: At 8.07 ¢, $201.60 in additional margin would be required
-
C At 8.25¢, $201.60 in additional margin would be required
-
D. At 8.25¢, $100.80 in additional margin would be required
Questão 59
Questão
A Japanese exporter of products to the U.S. has been enjoying the strength of the
dollar relative to the yen. He expects the dollar to weaken as the U.S. government
continues to print money. He anticipates receivables of $11 ,360,000 during
the coming months. The CME yen futures contract calls for delivery of 12.5
million yen, roughly equal to $113,600 per contract. The exporter hedges with 10
yen futures contracts. The yen is at $.009058 on the foreign exchange market and
the yen futures are at $.009139. A few months later, the hedge is lifted when the
yen is at $.009331 in the foreign exchange market, and the yen futures are at
$.009372. If the exporter had not hedged, he would have had an exchange rate
loss of:
Responda
-
A: $34,125
-
B. $29,125
-
C. $24,000
-
D. $39,250
Questão 60
Questão
An order that said "Buy 5 September lumber at 436.70 stop" would be
activated when:
Responda
-
A. September trades at 436.69
-
B. September trades at 436.68
-
C. September trades at or is bid at 436.70 or above
-
D. September trades at or is offered at 436.70 or below
Questão 61
Questão
All stop orders to sell are stop-loss orders to close out existing positions:
Responda
- True
- False
Questão 62
Questão
Open interest is calculated by adding the total number of open longs plus the total
number of open shorts:
Responda
- True
- False
Questão 63
Questão
Which inter-market spread would tend to be the lowest risk?
Responda
-
A. Long U.S. T-Bonds, long GNMAs
-
B. Long U.S. T-Bonds, short GNMAs
-
C. Short T-Bonds, long Commercial Paper
-
D, Long U.S. T-Bills, short U.S. T-Bonds
Questão 64
Questão
As the U.S. dollar rises relative to the Euro:
Responda
-
The gold market tends to decline
-
The gold market tends to rise
-
The gold market is not affected because gold is used strictly for industrial and ornamental purposes '
-
The gold market is affected, but sometimes it will rise, other times decline, as the dollar strengthens
Questão 65
Questão
Financial leverage is greater as market volatility declines for speculators in
financial futures:
Responda
- True
- False
Questão 66
Questão
On April 15, a speculator went net short 2 contracts in Dow Jones Industrial
Average futures at 10172 ($10 times the average per contract). On April 20, he
offset the position at 10255. Ignoring commission costs, what is the result of the
speculator's trades?
Responda
-
A. He made $830.00 per contract
-
B. He made $1,660.00 per contract
-
C. He lost $830.00 per contract
-
D. He lost $1,660.00 per contract
Questão 67
Questão
For a long hedger in futures, hedging against a rise in prices, a narrowing basis
results in the protection from the hedge being incomplete:
Responda
- True
- False
Questão 68
Questão
Which of the following hedging strategies in Canadian Dollar futures options
would provide the most protection against a swift sharp increase in the Canadian
Dollar exchange rate?
Responda
-
A. Short calls
-
B. Long puts
-
C. Long calls
-
D. None of the above
Questão 69
Questão
An insurance company portfolio manager anticipates premium inflows in 3
months. He would like to lock in the current market yield on a Treasury Bill
investment because he fears interest rates will decline in the meantime. He
decides to hedge in Eurodollar futures. He would:
Responda
-
A. Go long the futures
-
B. Go short the futures
-
C. Go long the futures and short call options
-
D. Go short the futures and short call options
Questão 70
Questão
The October 540 call option on Natural Gas futures is trading at a premium of
$.287/mmBTU. Oct. Natural Gas futures are trading at $5.432/mmBTU. Natural
. Gas futures are 10,000 mmBTUs per contract. The time value of the option is:
Responda
-
$287.00
-
$255.00
-
$32.00
-
$432.00
Questão 71
Questão
Your customer has been involved in the financial markets for years, and has
almost a "sixth sense" about interest rate fluctuations. He foresees an increase in
long-term rates during the next month or so. On January 15, March Treasury
Bond futures are at 109-06/32 and the June futures are at 110-10/32 ($100,000
per contract). The customer decides to spread off with 5 JunelMarch spreads.
Three weeks later, June futures are at 111-24/32 and the March futures are at
110-03/32. Your customer unwinds the spread at these prices. The result of the
spread transaction is:
Responda
-
A. A loss of$4,531.25
-
B. Againof$4,531.25
-
C. A gain of $2,656.25
-
D. A loss of$2,656.25
Questão 72
Questão
Your customer anticipates borrowing substantial amounts of money for the
purchase of real estate in four months time. He expects the current attractive
mortgage rates are not going to last until he can lock in his mortgage. Which of
the following actions would be advisable to take in futures now to lock in the
favorable mortgage rates until the deal is consummated?
Responda
-
Sell 3-month Eurodollar futures
-
Sell T-Bond futures
-
Buy T-Bond futures
-
Buy 3-month Eurodollar futures
Questão 73
Questão
A trader has a short position in 1 Nasdaq 100 futures contract (contract value
equals $100 x the index). On the next to last day of trading, settlement is at
1390.80. On the last day of trading, settlement is at 1372.50. Settlement and
delivery for the contract would be made by:
Responda
-
A. Debiting $1,830 from the long's margin account, crediting the short's account $1,830, and closing out their futures positions
-
B. The long receiving stock certificates from the short worth $1,830 and paying $1,830 to the short
-
C. The long receiving stock certificates from the short with a value of $137,250 and paying the short $137,250
-
D. The long receiving $137,250 worth of stock from the short and paying the short $1,830
Questão 74
Questão
To offset the purchase of a call option on futures, buy a put option of the same
expiration and strike price:
Responda
- True
- False
Questão 75
Questão
Margin requirements for futures spread transactions are usually less than margin
requirements for net long or short positions because:
Responda
-
A. Spread transactions have more risk than naked trades
-
B. Net long or short positions generally carry more risk than spreads
-
C. Most all spreads are put on and unwound on the same day
-
D. All of the above
Questão 76
Questão
Which of the following orders is a contingent order?
Responda
-
A. Stop limit
-
B. Market-if-Touched
-
C. One Cancels Other
-
D. Stop
Questão 77
Questão
Below is a listing of cash market T-Note prices and the June T-Note futures
prices for the same dates and times:
Cash Futures
Cash Futures
April 1 113-10 112-045
April 2 112-25 111-21
April 3 112--01 111-12
April 4 111-29 111-055
April 5 112-06 111-31
April 6 112-20 112-005
April 7 112-30 112-09
Between April 2 and April 6, basis:
Responda
-
A. Widened by 16.5/32
-
B. Narrowed by 16.5/32
-
C. Widened by 20.5/32
-
D. Narrowed by 20.5/32
Questão 78
Questão
When a futures contract trades up the limit:
Responda
-
A. Orders with prices at or below the limit price may be entered for execution
-
B. Only market orders may be entered
-
C. Trading is suspended for that day in that delivery month
-
D. Orders to liquidate existing open positions are not allowed on the exchange floor
Questão 79
Questão
A speculator is anticipating a rapid decline in S&P 500 futures prices. Which of
the following trades in S&P 500 options probably would produce the greatest
gain?
Responda
-
A. Buying puts
-
B. Selling puts
-
C. Selling calls
-
D. A bear put spread
Questão 80
Questão
A fat-cattle feeder hedges by:
Responda
-
A. Buying feeder cattle futures
-
B. Buying com futures
-
C. Selling com futures
-
D. Selling feeder cattle puts
Questão 81
Questão
When yields on long-term securities are greater than the yields on short-term
securities, the yield curve is described as normal:
Responda
- True
- False
Questão 82
Questão
Futures contracts are standardized as to the quality (or a range of standards for
quality) ofthe commodity or financial instrument which is good for delivery
against a futures contract. If a short going into delivery delivers a commodity or
financial instrument oflesser quality than that specified by the contract, the long
taking delivery is generally required to pay a premium for the difference in quality:
Responda
- True
- False
Questão 83
Questão
In early October, your hedging customer (a soybean farmer) is anticipating
harvest and the sale of his beans in November. Elevators in the area are currently
bidding an average of $5.98 per bushel, and the November soybean futures are
trading in the $6.12 range. The farmer estimates his total production will be
20,000 bushels, and he asks you to place a hedge with 4 November contracts
(5,000 bushels each). The order is confirmed filled at $6.12 per bushel. On
November 4, the farmer sells his soybeans at $5.665 per bushel, and he lifts his
hedge at $5.7775. What is the net price per bushel received by the farmer?
Responda
-
A. $6.0075
-
B. $6.12
-
C. $5.665
-
D. $5.7775
Questão 84
Questão
Your customer has entered an order to buy 3 Crude Oil futures contracts at
$43.27/bbl. Such an order is good:
Responda
-
A. Till cancelled
-
B. Through the end of the day
-
C. Through the life of the contract
-
D. Through the end of the trading month
Questão 85
Questão
At the end of each trading day, the clearinghouse adjusts all futures accounts
according to gain or loss from price movement for that day. This process is called:
Responda
-
Closing out
-
Settlement
-
Exercising
-
Evening up
Questão 86
Questão
The price at which a futures transaction is to be executed is specified in all of the
following kinds of orders, except:
Responda
-
A. Stop orders
-
B. Market orders
-
C. Limit orders
-
D. Stop Limit orders
Questão 87
Questão
A portfolio manager for a private pension fund has hedged the anticipated purchase
of$2 million of mutual fund shares in the CBOT Dow Jones Industrial
Average futures at 10177 ($10 times the average per contract). On the same
date, the mutual fund shares are priced at $43.20 in the cash market. Three
months later the portfolio manager purchases the mutual fund shares in the cash
market at $45.80. He lifts his hedge at 10279. What was the gain as a result of
the futures transaction?
Responda
-
A. $1020.00 per contract
-
B. $1046.00 per contract
-
C. $994.00 per contract
-
D. $102.00 per contract
Questão 88
Questão
Your customer sold 2 May 7900 Swiss Franc calls at a premium of 1.15¢ per
Swiss Franc (125,000 SF per option). Ifthe May Swiss Franc futures price is at
$.7900 at the time the options expire, the customer would:
Responda
-
A. Sustain a loss of $I,437.50
-
B. Sustain a loss of$2,875 .00
-
C. Break even
-
D. Profit by $2,875.00
Questão 89
Questão
Your customer is short hedged in S&P 500 futures. The index is at 1101.30 and
the futures price is at 1105.90 (futures value equals index number times 250).
When the hedge is lifted, the index is at 1113.00 and the futures is 1110.60. Such a
change in price and basis will result in a:
Responda
-
A. Gain of 11.70, or $2,925 per contract
-
B. Loss of 11.70, or $2,925 per contract
-
C. Loss of 4.70, or $1,175 per contract
-
D. Gain 7.00, or $1,750 per contract
Questão 90
Questão
A speculator thinks that Britain's inflationary policies are catching up with the
British Pound exchange rate. The Swiss, on the other hand, have paid strict
attention to fiscal responsibility. Thus, he expects a change in the relative value of
the British Pound and the Swiss Franc. To take advantage of this opportunity, the
speculator would most likely buy British Pound futures and sell Swiss Franc
Futures:
Responda
- True
- False
Questão 91
Questão
Your customer has gone short 2 corn futures contracts at 228.25¢lbu. (5,000,
bushels per contract). Later, he closes out the position at 2l9.50¢lbu. Commission
costs were $74.00 per contract. His realized profit is:
Responda
-
A. $437.50
-
B. $801.00
-
C. $875.00
-
D. $727.00
Questão 92
Questão
A gasoline wholesaler is hedged in Unleaded Gas futures (42,000 gallons per
contract). Between the time the hedge is placed and the time the hedger lifts it,
basis has narrowed from -$.0880 per gallon to -$.0430 per gallon, producing:
Responda
-
A. A loss of$ 1,890
-
B. A gain of $I,806
-
C. A gain of $3,696
-
D. A loss of $3,780
Questão 93
Questão
Expecting a rise in copper prices, a speculative customer puts on a spread buying
6 Jut. copper contracts at 123.95¢/lb. and selling 6 September contracts at
124.15¢/lb. (25,000 Ibs. per contract). After a few days, the customer suspects
that prices are heading lower, and unwinds his spread with July at 123.55¢/lb. and
the September at 123.65¢/lb. Given the change in the spread, this trade produced:
Responda
-
A loss of$600
-
A gain of$900
-
A loss of $1,500
-
A gain of$150
Questão 94
Questão
Yourcustomer has put on a spread, buying 7 April live cattle contracts at $.8300
per pound and selling June live cattle at $.8030 per pound (40,000 pounds per
contract). Later the spread has widened and the customer lifts the spread with
the April live cattle at $.8255 and June live cattle at $.7945. The result of his
spread trade is:
Responda
-
A loss of$2,380 on the April; a gain of$I,260 on the June for a net loss 0 of$I,120
-
B. A gain of$ 1,120 on the April; a loss of $2,380 on the June for a net loss of$I,260
-
C. A loss of $ 1,260 on the April; a gain of $2,380 on the June for a net gain-o of$I,120
-
D. A loss of$2,380 on the April; a gain of$ 1,120 on the June for a net loss of $1,260
Questão 95
Questão
If the U.S. dollar exchange rate increases, the following has happened historically:
Responda
-
U.S. silver prices go up
-
U.S. silver prices go down
-
No effect on U.S. silver prices
-
Silver prices decline in other countries
Questão 96
Questão
Complicated variable price limit systems often apply on the down-side only for
broad-based stock index futures, and are called:
Responda
-
A. Stop-loss limits
-
B. Circuit breaker limits
-
C. Down-only limits
-
D. Reset limits
Questão 97
Questão
For delivery of grain futures contracts on the Chicago Board of Trade, payment is
made in full:
Responda
-
A. On first notice day
-
B. By 1:00 p.m. on the day of delivery
-
C. On the last trading day
-
D. None of the above
Questão 98
Questão
Youare handling a large hedging account in com futures. The account position is
short 300,000 bushels. Margin at the exchange minimum is $34,500 (60 contracts,
each 5,000 bushels, each margined at $575). There is a credit balance in the
account of$54,500. Your customer wishes to call out $25,000. Under CBOT
initial and maintenance margin requirements for hedgers:
Responda
-
Your customer can withdraw $25,000
-
The customer may withdraw no more than $20,000
-
If your customer reduces his hedge by 5 contracts, he could withdraw $25,000
-
The customer may withdraw $25,000 only if the credit in excess of the required margin equals $30,000
Questão 99
Questão
A pool operator must have a record of all participants, and their acknowledgments
of receipt of disclosure documents:
Responda
- True
- False
Questão 100
Questão
You are a broker who has a customer with a non-discretionary account. You have
discussed a possible crude oil trade with this customer. He agrees that there is a
high probability of profit on the trade, but has not indicated the price level at which
. an order should be placed. You should enter his order at the market:
Responda
- True
- False
Questão 101
Questão
Under the rules of the exchanges which trade broad-based stock index futures,
stock index futures positions remaining open at the end of the last day of trading
must be settled in cash:
Responda
- True
- False
Questão 102
Questão
A Disaster Preparedness and Recovery Plan addresses ail of the following items,
except:
Responda
-
A. Off-site storage of important information, regularly updated /
-
B. Plans for communication with key personnel and contacts /
-
C. Functional secondary offices in a geographically removed location /
-
D. On-site bomb shelter and gas masks
Questão 103
Questão
Trading and position limits do not apply to bona fide hedging transactions:
Responda
- True
- False
Questão 104
Questão
CFTC regulations require that written confirmations for futures options transactions
be provided to the customer:
Responda
-
The day of the trade
-
No later than the business day following the trade
-
No later than the third business day following the trade
-
At the end of the month
Questão 105
Questão
Written powers of attorney over discretionary accounts remain in force until
revoked in writing (or by death of the customer or the associated person):
Responda
- True
- False
Questão 106
Questão
Under the terms of some futures contracts, speculators may be obligated to make
delivery against short contracts.
Responda
- True
- False
Questão 107
Questão
Which of the following disciplinary actions would be the first to be taken against
an AP found to have violated CFTC regulations:
Responda
-
Issuance of a fine
-
Issuance of a cease and desist order
-
Temporary suspension of trading privileges
-
Permanent revocation of registration as an AP
Questão 108
Questão
A pool operator who is advising that pool (acting as a Commodity Trading Advisor)'
does not have to register with the NFA as a CTA as long as he is registered
as a CPO:
Responda
- True
- False
Questão 109
Questão
A CPO with one CFTCregistered pool having 12 pool participants and $175,000
in capital contributions must be a member of the NFA:
Responda
- True
- False
Questão 110
Questão
The SPAN algorithm is widely used for calculating margin requirements. SPAN
stands for:
Responda
-
Secure Portfolio Algorithm Network B. Standard Prime Algorithm Network C. Standard Portfolio Analysis of Risk D. Secure Prime Analysis of Risk
-
B. Standard Prime Algorithm Network
-
C. Standard Portfolio Analysis of Risk
-
D. Secure Prime Analysis of Risk
Questão 111
Questão
A Commodity Customer Account Agreement form usually authorizes the transfer
of a customer's funds from his futures account to his stock account
Responda
- True
- False
Questão 112
Questão
If the NFA's Compliance Director reports the investigation of a possible NFA
Rule violation to the Business Conduct Committee, he has 4 months to complete
his investigation, during which time the NFA Member or Associate is restricted
from trading:
Responda
- True
- False
Questão 113
Questão
A CPO's Disclosure Document must include a record of all withdrawals from the
pool in its performance record:
Responda
- True
- False
Questão 114
Questão
A CPO must use the total performance of all his pools as a unit in his Disclosure
Document:
Responda
- True
- False
Questão 115
Questão
Your customer, a speculator, has asked you to open a discretionary account to
trade futures options. All of the following are required by exchange and NFA
regulations, except:
Responda
-
A. The customer having a current account in futures.
-
B. Prior written approval by the employer on the account and executive's discretionary authority.
-
C. Providing the customer with an explanation of the nature and risk of the strategies to be used initially in the account.
-
D. Frequent employer review of the discretionary account
Questão 116
Questão
A CPO's Disclosure Document need not include the number of units outstanding
as a part of its performance record because this may change before the disclosure
document is delivered
Responda
- True
- False
Questão 117
Questão
A respondent in a NFA hearing on disciplinary proceedings may have an attorney
at law present at any stage of the investigation or disciplinary proceeding except
when the NFAPresident, with the concurrence of the NFABoard of Directors or
Executive Committee, has reason to believe that summary action is necessary to
protect the respondent's customers.
Responda
- True
- False
Questão 118
Questão
An Associated Person may be associated with 2 FCMs at a time:
Responda
- True
- False
Questão 119
Questão
Part C of Rule 2-8 requires an AP to have two years of experience as a broker
before being allowed to offered SFPs:
Responda
- True
- False
Questão 120
Questão
As a Registered Representative, handling futures accounts for your customers,
you will be primarily responsible for collecting required customer margin deposits
Responda
- True
- False
Questão 121
Questão
A FCM who enters into a guaranteeing agreement with an IB is financially
responsible to the customers of the IB in arbitration and reparation proceedings,
but is not subject to NFAdisciplinary action based solely on violations committed
by the IB.
Responda
- True
- False
Questão 122
Questão
A CPO has been in business for 4 years. It must disclose its entire performance
history when it prepares its disclosure document.
Responda
- True
- False
Questão 123
Questão
Under exchange rules, which of the following requirements must be met for
proper handling of a discretionary account.
Responda
-
A. Maintenance of a $20,000 minimum net equity at all times.
-
B. The account executive has been registered as a NFA Associate for at least two consecutive years
-
C. A signed customer loan agreement
-
D. Oral approval by the customer as each of the orders is entered
Questão 124
Questão
If a customer declines to provide an NFA Member or Associated Person with
information required by the NFA's "Know Your Customer Rule," Rule 2-30, a
member may open an account, or handle futures trading for a customer upon:
Responda
-
A. The customer's approval
-
B. The NFA's approval
-
C. The CFTC's approval
-
D. The branch manager's approval
Questão 125
Questão
CPOs must periodically distribute an Account Statement in the form of a Statement
of Income (Loss) and a Statement of Changes in Net Asset Value prepared
in accordance with Generally Accepted Accounting Principles. The Account
Statement must be distributed at least monthly for pools with net assets of more
than $200,000:
Responda
- True
- False
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