10585584
Questão 1
Questão
A customer places an order to buy 3 Aug. pork belly contracts at $.9000 per lb.
and to sell 3 July pork belly contracts at $.9550 per lb. (40,000 lbs. per contract).
The spread narrows, and your customer closes his position with the May pork
bellies at $.9285 and the July contracts at $.9695. His gross gain on the trade is:
Responda
-
A. $1,740
-
B. $3,420
-
C. $560
-
D. $1,680
Questão 2
Questão
A CPO need not disclose for a pool for which he has participants but 'has not
commenced trading:
Responda
- True
- False
Questão 3
Questão
Assignment of futures options includes the notification of the seller of a put or call
that the buyer has exercised the option:
Responda
- True
- False
Questão 4
Questão
Cash settlement occurs in which of the following contracts:
Responda
-
A. Euro FX futures
-
B. Live Cattle futures
-
C. Feeder Cattle futures
-
D. T-Note futures
Questão 5
Questão
Upon filling an order, the FCM reports to his IB that the IB's order has been
filled. The IB need not time stamp the order because the FCM is required to time
stamp it upon calling the IB:
Responda
- True
- False
Questão 6
Questão
As an option approaches expiration, its time value decreases at an accelerating
rate:
Responda
- True
- False
Questão 7
Questão
An oil refinery has entered into a forward contract to buy crude oil at a fixed
price in 2 months for refining. To hedge against the possibility of declining prices
for petroleum products, the refinery may:
Responda
-
A. Buy crude oil futures
-
B. Sell heating oil futures
-
C. Do nothing because its purchase price is locked in and it need not hedge
-
D. Buy unleaded gas futures
Questão 8
Questão
A pool maintains 50% of its margin requirements in T-Bills. This fact must be
disclosed in its Disclosure Document:
Responda
- True
- False
Questão 9
Questão
An FCM and a CPO have an agreement whereby the FCM is required to remit a
fee to the CPO for trading business. This does not affect the operation of the
pool and therefore need not be disclosed:
Responda
- True
- False
Questão 10
Questão
Security Futures Products are:
Responda
-
A. Narrow-based index futures
-
B. Single-stock futures
-
C. Hybrid securities/futures instruments
-
D. All of the above
Questão 11
Questão
An NFA member who is in violation of an NFA rule or regulation may be subject
to one of two possible procedures. The first involves the preparation of a report,
investigation, and prosecution by the Compliance Director, while the second
procedure involves a summary suspension from membership when the NFA
Board of Directors believes that the member's actions could cause damage to the
futures industry. Under both procedures, the member firm has a trading restriction
until the matter is resolved:
Responda
- True
- False
Questão 12
Questão
According to NFA Rule 2-30 (the "Know your Customer" rule), an AP who
solicits accounts must decide what additional risk disclosure information might be
appropriate for his new customer:
Responda
- True
- False
Questão 13
Questão
A Futures Commission Merchant, in its discretion, may liquidate any customer's
open positions if the customer fails to meet a margin call on time:
Responda
- True
- False
Questão 14
Questão
The Customer's Commodity Agreement usually contains which of the following:
Responda
-
A. A provision authorizing the transfer of a customer's funds from his stock account to his futures account
-
B. A provision authorizing the broker to place trades in the account without contacting the customer in advance
-
C. A provision requiring the broker to liquidate open positions should the customer fail to meet a margin call in a timely fashion
-
D. A provision authorizing the transfer of funds from his futures account to his stock account
Questão 15
Questão
Using basis trading principles, your customer would have a strengthening of the
basis when the cash price remains unchanged and the futures price falls:
Responda
- True
- False
Questão 16
Questão
October gold futures are trading at $404.80/troy oz. Your customer buys one
October 405 call at $9.60, sells two October 415 calls at a total of $12.00, and
/ buys one October 425 call at $3.20. Your customer has
Responda
-
A. Purchased a strangle spread
-
B. Purchased a combination straddle
-
C. Purchased a butterfly call spread
-
D. Purchased a vertical bull call spread
Questão 17
Questão
A Member, unless under investigation or disciplinary charges by the NF A, may
resign at any time by filing written notice with the Secretary:
Responda
- True
- False
Questão 18
Questão
Daily price limits for single-stock futures:
Responda
-
A. Are not set, but trading stops when the CFTC and SEC halt their trading
-
B. Are not set, but trading stops when the underlying stock stops trading
-
C. Vary from contract to contract based on Circuit breaker requirements
-
D. Are based on the same Circuit breaker limits as the underlying stock
Questão 19
Questão
NFA Compliance Rule 2-4 says, "Members and Associates shall observe high
standards of commercial honor and just and equitable principles of trade in the
conduct of their commodity futures business.":
Responda
- True
- False
Questão 20
Questão
Researching inflation rates around the world, you have found the following
countries'rates:
U.S. 4%
Japan 6%
Switzerland 3%
European Union 5%
Great Britain 4%
One of your clients is interested in trading currency futures options. You might
suggest that your client:
Responda
-
A. Buy Euro FX calls
-
B. Write British Pound puts
-
C. Write Japanese Yen puts
-
D. Buy Swiss Franc puts
Questão 21
Questão
When an m is guaranteed, that means that the m has an FCM who will provide
$30,000 net capitalization if the m needs the money to satisfy NFA capitalization
requirements, while an independant IB has its own $30,000 net capitalization.
Responda
- True
- False
Questão 22
Questão
The Commodity Exchange Act requires bonafide hedging customers to meet
minimum capitalization requirements:
Responda
- True
- False
Questão 23
Questão
NFA Rule 2-30, the "Know your customer rule," requires the Member or Associate
to obtain a customer's:
Responda
-
A. Current annual income and net worth
-
B. True name and address, and principal occupation or business
-
C. Customer's approximate age and previous investment and futures trading experience.
-
D. All of the above
Questão 24
Questão
Chicago Board of Trade Rule 431.02 states that "changes in margin requirements
shall be effective on all transactions.":
Responda
- True
- False
Questão 25
Questão
An AP is required to reregister with the CFTC when he moves from one FCM to
another, even though his registration has not expired and all proper subsequent
filings have been made:
Responda
- True
- False
Questão 26
Questão
Your customer enters a long futures hedge. If the basis strengthens, he will not
only be fully protected against a price rise, but he will also earn a profit from the
change in basis:
Responda
- True
- False
Questão 27
Questão
Before a customer opens a discretionary futures account, the CFTC requires that
the RCR obtain all of the following, except:
Responda
-
A. Signed Risk Disclosure Statement
-
B. Signed Commodity Customer Agreement
-
C. Signed Customer Loan Agreement
-
D. Signed Customer Loan Agreement
Questão 28
Questão
Any up front fees and expenses charged by a CPO or CTA to his customer must
be disclosed in the Risk Disclosure Statement:
Responda
- True
- False
Questão 29
Questão
Prices for com futures are as follows:
March $2.49
July $2.45
Dec $2.4425
May $2.5750
Sept $2.50
Based on these prices, you would conclude that the market has:
Responda
-
A, Ample current supplies
-
B. Strong demand for deferred futures supplies , -
-
C. Short cash market supplies
-
D. None of the above
Questão 30
Questão
The Options Risk Disclosure Statement requires that an FCM provide a trader
which of the following before he enters an option trade:
Responda
-
A. The procedure for exercising the option
-
B. A description of all costs if the commodity option is exercised
-
C. An explanation of an option grantor's initial margin requirement
-
D All of the above
Questão 31
Questão
A sell MIT order becomes a market order when the commodity sells (or is bid) at
or below the order price:
Responda
- True
- False
Questão 32
Questão
A customer "give-up" is a trade executed by one broker for the client of another
broker and then "given-up" to the regular broker:
Responda
- True
- False
Questão 33
Questão
An example of a Treasury bond bull call spread is:
Responda
-
A. Buy one 111 call, sell one 111 put
-
B. Buy one 111 call, sell one 109 call
-
C. Buy one 109 call, sell one 109 put
-
D. Buy one 109 call, sell one 111 call
Questão 34
Questão
The Customer's Commodity Agreement must be signed by the customer to
assure the FCM that:
Responda
-
A. The customer waives his right to file a lawsuit against the FCM
-
B. The customer will repay any funds that it borrows from the FCM
-
C. The customer is aware that his account may be closed out if margin requirements are not met
-
D. All of the above
Questão 35
Questão
"Margin" for futures is better described as earnest money or a performance bond:
Responda
- True
- False
Questão 36
Questão
Exchange regulations do not require which of the following for proper handling of
discretionary accounts
Responda
-
A. Written confirmation of each trade
-
B. Notification of each new order before it is entered
-
C. Written power of attorney
-
D. Daily supervision by a partner or officer of the firm -
Questão 37
Questão
The cash settlement amount for S&P 500 futures contracts is based
Responda
-
A. The S&P 500 cash index at the close of business on settlement day
-
B. The S&P 500 futures price at the close of business on the day before settlement day
-
C. The S&P 500 cash index at the close of business on the day before settlement day
-
D. The S&P 500 futures price, which has converged to the special opening quote of the cash index on the third Friday of the month
Questão 38
Questão
The CFTC regulates the trading of options on corn, crude oil futures, and broadbased
stock index futures; the SEC regulates the trading ofNYSE Composite
index futures options and single-stock futures:
Responda
- True
- False
Questão 39
Questão
Any FCM which enters into a guarantee agreement with an ill shall be jointly and
severally subject to discipline for any NFA Compliance Rule violations committed
by the ill:
Responda
- True
- False
Questão 40
Questão
A CPO who is acting as a CTA for his pool must register as a CTA:
Responda
- True
- False
Questão 41
Questão
A customer purchases 2 March T-Note 112 calls at 0-45/64 ($100,000 face
value). If the March futures price rises to 116-00/32 and the customer exercises,
his profit will be:
Responda
-
A.· $6,593.75
-
B. $3,296.88
-
C. $8,000.00
-
D. $4,000.00
Questão 42
Questão
Your customer is a cotton hedger. In May, he forecasts a crop yield of 200,000
lbs. The current cash price is 57.1O¢!ffi. He decides to hedge against a decline in
cotton prices using 4 October cotton futures contracts (50,000 lbs. each) at
53.75¢/lb. At harvest, he sells his cotton at 54.25¢/lb. in the cash market, and lifts
the hedge with October futures at 50.1 O¢/lb. What is his net price per pound?
Responda
-
A. 54.25¢
-
B. 60.75¢
-
C. 57.90¢
-
D. 57.10¢
Questão 43
Questão
In the storable commodities, a buy hedge would be used to lock in the sales price
of the cash commodity:
Responda
- True
- False
Questão 44
Questão
A small pension fund manager has a portfolio consisting primarily of blue chip
stocks currently valued at $1,000,000. Expecting a market decline, he hedges the
portfolio with the sale of25 DJIA futures at 10177 ($10 times the average). The
market does decline, and the value of the portfolio falls to $750,000. The stock is
sold and the 25 DJIA futures contracts are offset at 9227. The hedge:
Responda
-
A. Provided full protection against a loss of$250,000 on the portfolio and earned nothing additional on the futures
-
B. Provided full protection against a loss of$250,000 on the portfolio and earned an additional $12,500 on the futures
-
C. Produced a gain of$237,500 on the futures which covered all but $12,500 of the total $250,000 loss
-
D. Produced a gain of$237,500 on the futures covering all but $8,500 of the total $250,000 loss on the portfolio
Questão 45
Questão
NFA Rule 2-27 (Transfer of Customer Accounts) does not prohibit the transfer
of a customer's account from one Member to another when the transfer is based
upon an oral request:
Responda
- True
- False
Questão 46
Questão
Your customer has been watching for a spread opportunity in unleaded gas
futures (42,000 gallons per contract). On January 10, the March futures contract
is $.0650 over the May futures. Your customer expects a decline in unleaded gas
demand. You enter his spread order to sell 10 March, buy 10 May when the
March is $.0650 over the May. By February 1, the spread has weakened. The
March is now $.0240 over the May. He lifts his spread with the following results:
Responda
-
A. Again of $I,722
-
B. A loss of$1,722
-
C. A loss of $17,220
-
D, Again of $17,220
Questão 47
Questão
Assume margin for soybean meal futures on the CBOT is $24.30 per ton and
commissions are $45 per round turn (100 tons per contract). Your customer goes
long 3 contracts at $ 195.50/ton, and liquidates his position at $199.20. What is his
percentage of profit on his margin deposit after commissions:
Responda
-
A. 15%
-
B. 46%
-
C. 13%
-
D. 40%
Questão 48
Questão
In the SPAN (Standard Portfolion Analysis of Risk) margin requirement system,
the exchange provides the SPAN information in downloadable files and the
brokerage firms:
Responda
-
A. Need do nothing more with the information
-
B. Forward the downloaded information directly to their customers
-
C. Use the "back-end" SPAN program and the downloaded information to determine margin requirements for each customer's portfolio
-
D. Forward the "back-end" SPAN program and the downloaded information directly to their customers
Questão 49
Questão
On January 15, a meatpacker hedges 200,000 lbs. of hogs, which he will need in
late March, using the April lean hog futures contract (40,000 lbs. per contract).
The April futures price is 63.65¢/lb. when the local cash market price is 65.25¢/
lb. On March 20, he buys live hogs in the local cash market for 68.1 O¢/lb. and
lifts his hedge at 66.95¢/lb. His net cost for the live hogs was:
Responda
-
A, 68.l0¢/lb.
-
B. 64.80¢/lb.
-
C. 65.25¢/lb.
-
D. 61.95¢/lb.
Questão 50
Questão
A pool operator does not have to disclose the potential size of a pool:
Responda
- True
- False
Questão 51
Questão
Risk Disclosure Statements must be received and signed only by those customers
who are opening discretionary accounts:
Responda
- True
- False
Questão 52
Questão
An RCR handling a non-discretionary account has a hot trade for his customer,
but the customer is out of town on business. The RCR may place the customer's
order, providing he will be able to notify the customer within 24 hours:
Responda
- True
- False
Questão 53
Questão
NFA Members and their associates are not allowed to conduct business with a
suspended Member during the suspension unless specifically authorized by the
Business Conduct Committee or the Appeals Committee:
Responda
- True
- False
Questão 54
Questão
An account executive urges a wealthy new customer to trade excessively so he
can generate a large commission income. This unethical act, done solely for his
own benefit, is called:
Responda
-
A. Laundering
-
B. Churning
-
C. Insider trading
-
D. Whipsawing
Questão 55
Questão
A CPO may not commingle trading funds for more than one pool, nor commingle
funds of a pool with those of the pool operator:
Responda
- True
- False
Questão 56
Questão
A speculator purchases two Swiss Franc futures contracts in June at $.7846
(each contract is 125,000 Francs). In August, he sells the two contracts at
$.7972. Ignoring the commission costs, what is his gross gain on the trade?
Responda
-
A. $3,550
-
B. $3,150
-
C. $3,015
-
D. $3,575
Questão 57
Questão
In August, after a rising trend in cocoa futures prices has been confirmed, your
customer enters a long position in 5 December contracts (10 metric tons per
contract) at $1,675 per metric ton. By September 24, the December cocoa
futures have risen to $1,762. Because your client's analysis of the market
indicates that cocoa prices have topped out, he decides to enter a stop order to
sell at $1,752 per metric ton GTC. On September 26, the stop order is touched
and filled at $1,751. After commissions of $30 per contract, his trade resulted in a
gain of:
Responda
-
A. $3,800
-
B. $3,950
-
C, $3,400 1) $3,650
-
D. $3,650
Questão 58
Questão
If a speculator takes a short position of 1 Canadian Dollar futures contract (each
contract is 100,000 Canadian Dollars), at $.7620, and later liquidates the position
when the Canadian Dollar is at $.7865, the gross loss is:
Responda
-
A $3,062.50
-
B. $2,450.00
-
C. $1,225.00
-
D. $612.50
Questão 59
Questão
NFA Compliance Rule 2-3 states that Members and Associates shall observe
high standards of commercial honor, andjust and equitable principles of trade in
the conduct of their commodity futures business:
Responda
- True
- False
Questão 60
Questão
A metals speculator takes a long position of 4 NYMEX platinum futures contracts
at $854.90/troy oz. (50 troy ounces per contract). Later, the market moves to
$847.80. He decides to sell, and his order is filled at $848.10. What is the
trader's profit or loss after commission costs of$45.00 per contract?
Responda
-
A. $295
-
B. $1,360
-
c.. $1,540
-
D $1,180
Questão 61
Questão
A steel exporter anticipates sales to Japan, and expects payment in Japanese
Yen, rather than U.S. dollars. He believes that the dollar will strengthen against
the yen; therefore, the exporter would hedge against his exchange rate loss by
buying yen futures:
Responda
- True
- False
Questão 62
Questão
You have a speculative customer who anticipates a decline in Treasury Bond
interest rates. Which of the following trades will produce the greatest gain:
Responda
-
A. Purchasing calls
-
B. Purchasing puts
-
C. A bull call vertical spread
-
D. Selling calls
Questão 63
Questão
Your customer went short 3 live cattle futures contracts at 83.65¢ per pound
(40,000 lbs. per contract). Later, he liquidated the position at 78.67 ¢ per pound.
After total commission costs of$85 .50, his realized profit is:
Responda
-
A. $6,061.50
-
B. $5,976.00
-
C. $1,906.50
-
D. $5,890.50
Questão 64
Questão
NFA membership may be terminated for failure to notify the NFA of an address
change:
Responda
- True
- False
Questão 65
Questão
The following order is prohibited on which exchange- "Buy March wheat at
315.50, Sell May wheat at 322.75 stop":
Responda
-
A. Chicago Board of Trade
-
B. Kansas City Board of Trade
-
C. Minneapolis Grain Exchange
-
D. None of the above
Questão 66
Questão
"Short covering" means:
Responda
-
A. Liquidating a long position
-
B. Closing out a hedge
-
C. Liquidating a short position
-
D. Evening up a purchase
Questão 67
Questão
Your customer is long Deutsche Mark-futures. A weakening of the U.S. Dollar
will produce a gain:
Responda
- True
- False
Questão 68
Questão
SFP promotional material must do all of the following, except:
Responda
-
A. Clearly show who is offering the promotion and how to acquire the SFP Risk Disclosure Document
-
B. Cite the sources of any tables, charts, or statistical information included in the promotion
-
C, State precautions or disclaimers in a manner designed to mislead or confuse the customer or obscure the precautions or disclaimers
-
D. Be approved in writing by the Designated Security Futures Principal (DSFP) prior to use
Questão 69
Questão
GSCI (Goldman Sachs Commodity Index) index futures are traded in index points
with a value of$250. If your customer sold 20 GSCI futures short at 312.50 and
closed the position at 299.20, what is the gross gain or loss on the trade?
Responda
-
A. Loss of $66,500.00
-
B. Gain of $3,325.00
-
C. Loss of $3,325.00
-
D. Gain of $66,500.00
Questão 70
Questão
An international company commonly uses interest-bearing Certificates of Deposit
to manage its cashflow. It keeps funds in CDs in anticipation of quarterly payments
oftaxes and dividends. To protect against a decline in the value of CDs
held in their portfolio, which ofthe following strategies would be most suitable:
Responda
-
A. Buy Eurodollar futures and sell cash CDs short
-
B. Sell Eurodollar futures and buy cash CDs
-
C. Buy Eurodollar futures
-
D: Sell Eurodollar futures
Questão 71
Questão
NFA has different rules for targeted SFP promotions from the rules for promotions
to the general public. Promotions to the general public can include the
following items, except
Responda
-
A. The Member firm's name
-
B. How to acquire the SFP Risk Disclosure Statement
-
C. A description of the SFP trading program being promoted
-
D. SFP recommendations
Questão 72
Questão
A speculative customer has taken a short position in 2 Eurodollar futures contracts
at 98.07. He closes the position at 97.40. Ignoring commission costs, what
is the result of his trade?
Responda
-
A gain of $1,675.00
-
A gain of $3,350.00
-
A gain of $2,093.75
-
A loss of $1,675.00
Questão 73
Questão
A trader exercises a 210 corn call when the underlying futures price is $2.35. He
acquires..
Responda
-
A long futures position at a price of $2.35
-
A short futures position at a price of $2.35
-
A long futures position at a price of $2.1 0
-
A short futures position at a price of $2.1 0
Questão 74
Questão
According to Rule 2-30, NFA Associates must verify information given to them
by a new customer:
Responda
- True
- False
Questão 75
Questão
Which of the following hedging strategies in options on Japanese Yen futures
would provide the best protection against a sharp decline in the Japanese Yen
exchange rate?
Responda
-
A. Short puts
-
B Long calls
-
C Long puts
-
D Put call straddle
Questão 76
Questão
The July 640 soybean put option premium is 28.50¢ per bushel, and the July
futures are trading at $6.3725 per bushel. The time value of the option is:
Responda
-
A. 2.75¢ per bushel
-
B. 25.75¢ per bushel
-
C. 28.50¢ per bushel
-
D. O¢per bushel
Questão 77
Questão
A corporate treasurer plans to sell $1,000,000 of commercial paper in six months.
The prime commercial paper rate is 3%. The 3-month Eurodollar rate is 2%, and
the Eurodollar futures rate for the appropriate contract is at 2%. He decides to
hedge against an increase in interest rates. His best strategy would be to:
Responda
-
A. Sell September Eurodollar futures and buy 3-month Eurodollars
-
B. Buy September Eurodollar futures
-
C Buy Eurodollar futures and sell Eurodollars in the cash market/
-
D. Sell September Eurodollar futures
Questão 78
Questão
NFA Compliance Rule 2-9, Part C requires FCMs and IDs to have anti-money
laundering programs. Interpretive Notice #9045 further clarifies their duties.
Compliance with Rule 2-9 requires all of the following, except:
Responda
-
A. Knowing the "true identity" of your customers
-
B. Recognizing and reporting "suspicious activity"
-
c. Keeping records in such a fashion as to produce an audit trail
-
D. Banning clients from certain "high risk" countries of origin
Questão 79
Questão
In December, your customer, a large taxpayer, anticipates a tax payment in April
of$965,000. At that time, he expects to have to liquidate some of his blue chip
stocks to make the payment. He believes that the market is somewhat overpriced.
and expects a decline between now and April. With the DJIA futures at
10065 now (each point equals $10), which of the following is the appropriate
hedging strategy:
Responda
-
A. Buy 10 DJIA futures
-
B. Sell 9 DJIA futures
-
C. Buy 9 DJIA futures"
-
D. Sell 10 DJIA futures"
Questão 80
Questão
The CFTC may either seek an injunction to restrain someone from breaking a
regulation, or a writ of mandamus to compel someone to comply with a regulation:
Responda
- True
- False
Questão 81
Questão
at 110 11132 ($100,000 face value each contract). On January 20, he closed the
position at 109 21132. Ignoring commission costs, what was the result of the
trade:
Responda
-
He lost $6,875 per contract
-
He gained $6,875 per contract
-
He gained $687.50 per contract
-
None of the above
Questão 82
Questão
Futures exchanges establish the minimum margin requirements for hedgers, but
speculative margins are established by the NF A:
Responda
- True
- False
Questão 83
Questão
According to NFA Compliance Rule 2-29, no Member shall use any promotional
material which says that futures trading is appropriate for everyone:
Responda
- True
- False
Questão 84
Questão
If the Compliance Director has reason to believe that an NFA regulation is about
to be violated, he may do which of the following, except:
Responda
-
Submit a written report about the violation to the Regional Committee
-
Summarily suspend the Member's membership in the NFA
-
Recommend a course of action for the Regional Committee
-
Require statements under oath from any Member, Associate, or other person connected with the case ./
Questão 85
Questão
On November 1, a soybean farmer is offered $5.9750 per bushel for his soybeans in the local cash market and the November futures are priced at $6.1250 per
bushel (5,000 bushels per contract). He decides to fully hedge his beans, and his
order is filled at $6.1225 per bushel. On November 14, the farmer is ready to sell
his soybeans in the local market at $5.8250 per bushel. On the same date, the
November futures are trading in the $5.9250 to $5.9350 per bushel range. He
instructs his broker to lift his hedge; he receives confirmation that his order has
been filled at $5.93 per bushel. Ignoring transaction costs, but considering the
effects of both cash and futures price movements, what is the farmer's gross
income per bushel received for his beans:
85.
Responda
-
A: $5.8675
-
B. $5.9425
-
C. $5.8250
-
D. $6.0175
Questão 86
Questão
Studying the financial markets, a speculator believes there is likely to be an increase in the Fed Funds rate. On August 30, the December Fed Funds futures
price is 98.05. Contracts are for $5,000,000 face amount. Each .005, one-half
basis point, equals $20.835. The speculator takes a short position in 3 contracts at
98.05. On November 30, the speculator offsets the position with December Fed
Funds futures at 97.825. As a result, the speculator has:
Responda
-
A. Gained $937.58
-
B. Lost$937.58
-
C. Gained $2,812.73
-
D. Lost$2,812.73
Questão 87
Questão
In February, a contractor forecasts its 2nd quarter need for lumber at 1.19 million
board feet. Currently, lumber is trading at $430.10/1,000 bd. ft. in the cash
market and the CME May lumber futures are at $434.3011 ,000 bd. ft. The
contractor gives his broker the order to buy 10 contracts (each contract for
110,000 bd. ft.). The order is filled at $434.40. By mid April, lumber prices have
risen anticipating strong seasonal demand. Cash lumber is $436.2011,000 bd. ft.,
and the May futures is at $441.40/1,000 bd. ft. The contractor purchases the
lumber he needs and lifts the hedge at these prices. Given the change in cash and
futures prices, what is the cost of the lumber to the contractor?
Responda
-
A. $436.20/1,000bd. ft.
-
B. $443.20/1,000bd. ft. -e."
-
C, $431.00/1,000bd.ft.
-
D. $429.20/1,000bd. ft.
Questão 88
Questão
Your customer has been watching the stock market, and in October she feels that
it is bound for a major decline following months of feverish speculation which has
bid prices up to levels not supported by corporate earnings. The customer
decides to go short 3 March E-mini S&P 500 futures contracts, which are trading
around 1100. This index futures, representing 500 diversified stocks, has a
contract value of the index number times $50. Minimum speculative margin is
$4,000 per contract. Your customer's order is filled at 1102.05. By December,
the Dow has slipped substantially, but the market appears to be trying to rally.
Your customer places a stop loss order at 1020.00, and it is later activated and
filled at 1019:80. What is the result of her trade:
Responda
-
A. gain of$4, 112.50
-
B. A gain of$8,225.00
-
C. A gain of$12,337 .50
-
D. A loss of$4, 112.50
Questão 89
Questão
The overarching law governing anti-money laundering programs is the:
Responda
-
A. Anti-Money Laundering Act
-
B. Bank Secrecy Act
-
C. Money Laundering and Sedition Act
-
D. Anti-Bank Secrecy Act
Questão 90
Questão
Your customer regularly trades futures option spreads. His latest trade was a
short strangle in Euro FX options. Euro FX futures are trading at $1.2050.
Which of the trades below did he enter?
Responda
-
A.Sold March 12200 Euro FX calls and sold March 11800 Euro FX puts
-
B. Bought March 12200 Euro FX calls and sold March 11800 Euro FX puts /
-
C. Bought March 12200 Euro FX calls and bought the March 11800 Euro / FXputs
-
D. Sold March 122 Euro FX calls and bought March 11800 Euro FX puts
Questão 91
Questão
Vertical option spreads include:
Responda
-
A. Call bull spreads
-
B. Put bear spreads
-
C. Bull put spreads
-
D. All of the above
Questão 92
Questão
When a call option is exercised, the writer receives:
Responda
-
A . A short futures position
-
B. A long futures position
-
C. A short cash position
-
D. A long cash position
Questão 93
Questão
Intrinsic value is:
Responda
-
A. The difference between the futures price and the option strike price for an out-of-the-money option
-
B. The difference between the futures price and the option strike price for an in-the-money option
-
C. The difference between the option strike price and the premium for an in the- money option
-
D. The difference between the option strike price and the premium for an out-of-the-money option
Questão 94
Questão
To profit from a bull spread, a futures trader would expect the spread to:
Responda
-
A. Widen
-
B. Narrow
-
C. Weaken
-
D. Strengthen
Questão 95
Questão
The purchaser of a December 9200 Japanese Yen put exercises his option when
the December Yen futures reach $.0090581¥. What book entries are made in the
accounts of the put purchaser and seller?
Responda
-
A. Purchaser receives a long futures position at $.009058; seller receives a short futures position at $.009058
-
B. Purchaser receives a short futures position at $.009058; seller receives a long futures position at $.009058
-
C Purchaser receives a short futures position at $.009200; seller receives a long futures position at $.009200
-
D. Purchaser receives a long futures position at $.009200; seller receives a short futures position at $.009200
Questão 96
Questão
A spreader is looking for an opportunity in crude oil futures. He studies the
following prices:
Dec. $44.58lbbl.
Jan. $42.32lbbl.
Feb. $41.80lbbl.
Which of the following spreads would be most likely to be profitable?
Responda
-
A. The Dec./Feb. spread
-
B. The Dec./Jan. spread
-
C. The Feb/lDec. spread
-
D. The Jan./Dec. spread
Questão 97
Questão
A spreader bought an October 400 gold call at $13 .00/troy oz. and sold an August
410 gold call at $6.80. What is his maximum possible profit and his maximum
potential loss?
Responda
-
A. $620 profit; $380 loss
-
B. $380 profit; $620 loss
-
C. Cannot be determined from the information provided
-
D. None of the above
Questão 98
Questão
A limited risk spread is:
Responda
-
A. A horizontal spread
-
B. A bear spread
-
C. A diagonal spread
-
D. A bull spread
Questão 99
Questão
The CFTC sets certain requirements for CTAs due to the fiduciary nature of their
relationship with their clients. CTAs are required to include in their Disclosure
Documents:
Responda
-
A. Business background for the 3 preceding years for the CTA and each principal
-
B. Actual performance record for the 3 preceding years for the CTA and each principal
-
C All litigation within the 3 preceding years for the CTA and each principal
-
D, The Cautionary Statement, "The Commodity Futures Trading Commission has not passed upon the merits of participating in this trading program nor has the Commission passed on the adequacy or accuracy of this Disclosure Document."
Questão 100
Questão
When buying an option, it is important to look for one with a large time value
because time value increases as the option moves into-the-money:
Responda
- True
- False
Questão 101
Questão
A CTA is exempt from registration with the CFTC for any of the following
reasons, except:
Responda
-
A. He writes a newsletter, but does not manage any accounts
-
B. He gives advice for management of a pool, but is exempt from registration as a CPO
-
C. He is a dealer in the cash market who gives trading advice in line with the cash market business
-
D. ~ He is a CPO and the advice is given in the course of his business
Questão 102
Questão
Futures contract delivery:
Responda
-
A. Takes place during the delivery period
-
B. Transfers title to the physical commodity
-
C. Delivers the commodity to the oldest outstanding long
-
D.. All of the above
Questão 103
Questão
CTAs are required to keep certain records in an accurate and orderly fashion at
their main business office. The following records are required to be readily
available for the Commission's inspection, except:
Responda
-
A. Clients' and subscribers' names and addresses
-
B. Powers of Attorney authorizing the CTA to trade on the client's behalf
-
C. Copies of confirmations of each transaction, Purchase and Sale Statement, and monthly statement received from the FCM
-
D. The CTA's most recently filed Income Tax return
Questão 104
Questão
Commodity Pool Operator (CPO) means anyone engaged in a business such as
an investment trust, or syndicate, who solicits, accepts, or receives funds, securities
or property for the purpose of trading in any commodity for future delivery
traded on an exchange or board of trade. A person is exempt from registration as
a CPO if the following conditions are met, except:
Responda
-
A. He does not receive any compensation for operating the pool
-
B He operates only one pool at any time
-
C, He does not do any advertising in connection with the pool
-
D. He is an AP and the pool is operated as part of his employment as an AP
Questão 105
Questão
Delta correlates the movement of a futures option premium to the underlying
futures price. Beta correlates the movement of a stock or portfolio to the movement
of an index:
Responda
- True
- False
Questão 106
Questão
Futures Commission Merchants (FCMs) are individuals, corporations, etc., who
are engaged in soliciting or accepting orders for the purchase or sale of a futures
contract. An FCM accepts money, securities, or property to margin or guarantee
the trades accepted; therefore, FCMs are required to comply with CFTC regulations
governing the proper handling of accounts. FCMs must do all ofthe following,
except:
Responda
-
A. Maintain trading records for 3 years
-
B. Report daily on positions in excess of set limits for all traders,
-
C. Maintain their funds in accounts separate from customers' funds'
-
D. Prohibit floor brokers from trading for their own accounts while holding a customer's order for the same trade
Questão 107
Questão
When a put is exercised, the writer receives a short futures position:
Responda
- True
- False
Questão 108
Questão
Each of the different stock indexes has a different "character." The Value Line
Average, for example, requires a very broad based market movement to move
the index. The Dow Jones Industrial Average Index is
Responda
-
A.. Mostly blue chip stocks
-
B. A geometrically weighted index
-
C. Made up of 20 stocks
-
D. All of the above
Questão 109
Questão
speculator buys 2 Jan. 75 orange juice calls at 6.70¢/lb.and sells 2 Jan. 80
orange juice calls at 4.80¢/lb. What are his maximum profit potential and maximum
possible loss before commissions if each contract contains 15,000 lbs.?
Responda
-
A. $465 profit; $285 loss
-
B. $285 profit; $465 loss
-
C. $570 profit; $930 loss
-
D. $930 profit; $570 loss
Questão 110
Questão
Recordkeeping for CPOs is comparable to that for CTAs, with the following
additional information to be available from the CPO for inspection by the CFTC:
Responda
-
A. A journal of original entry, showing all receipts and disbursements
-
B. Adjusting entries and any other records of original entry forming the basis of entries in any ledger
-
C. A general ledger containing details of all asset, liability, capital, income, and expense accounts
-
D. All of the above
Questão 111
Questão
Sam Spreader sees a profitable opportunity in Eurodollar futures options. He
buys the September 9750 call and sells the December 9800 call. This is an
example of a:
Responda
-
A . Horizontal spread
-
B Diagonal spread
-
C. Vertical spread
-
D. Straddle
Questão 112
Questão
There are two common types of futures spreads: bull spreads and bear spreads.
A bear spread has:
Responda
-
A. Limited risk and unlimited profit potential
-
B. Limited risk and limited profit potential
-
C. Unlimited risk and unlimited profit potential
-
D. Unlimited risk and limited profit potential
Questão 113
Questão
An order to sell at 98.87 stop 98.00 limit could be filled at any of the following
prices, except:
Responda
-
A. 98.90
-
B. 98.50
-
C. 98.00
-
D. 97.95
Questão 114
Questão
A speculator deposits $20,000 in a margin account. Soon, he sees an opportunity
in U.S. Dollar Index futures, expecting them to rise. Margin for a U.S. Dollar
Index contract with his broker is $3,000. He buys the maximum number of
March futures contracts at 89.64 that he can with the $20,000 in his account.
Prices rise to 92.22, and he sells his positions, receiving his fill at 92.19. U.S.
Dollar Index contracts are $1,000 times the index. Commissions were $37.50 per
round turn. What was his net return on invested margin?
Responda
-
A. 31.5%
-
B. 75.4%
-
C. 76.5%
-
D. 12.8%
Questão 115
Questão
When a client is buying and selling only futures options, he is not required to put
up margin money or meet margin calls:
Responda
- True
- False
Questão 116
Questão
Futures options can be used to hedge either cash or futures positions. To hedge
with futures options, the hedger writes a call or a put:
Responda
- True
- False
Questão 117
Questão
A trader decides there are some profitable spreading opportunities in wheat
options. The market is inverted and the trader thinks a bear put spread would be
a good idea. Which positions would he enter:
Responda
-
A. Buy Sep 310 com put, sell Dee 310 com put
-
B. Buy Dec 310 com put, sell May 310 com put
-
C. Buy Dec 320 com put, sell Dee 300 com put
-
D. Buy Dec 300 com put, sell Dee 320 com put
Questão 118
Questão
A Swiss watch exporter sends most of his handcrafted watches to the United
States, and is usually paid in Dollars. He thinks that the strength of the Dollar is
thoroughly overrated, and wants to hedge his Dollar receipts. He would rather
not use futures because he does not want to have to meet margin calls if the
market moves against his hedge; the options markets appeal to him more. He
would probably:
Responda
-
A. Sell Swiss Franc calls
-
B. Buy Swiss Franc calls
-
C. Sell Swiss Franc puts
-
D. Buy Swiss Franc puts
Questão 119
Questão
Futures options expire about one month prior to the underlying futures contract
delivery period, except:
Responda
-
A. Broad-based Stock Index futures options
-
B. T-Bond futures options
-
C. Com futures options
-
D. Gold futures options
Questão 120
Questão
You handle an account for a securities dealer who has a $3 million inventory of
5% T-Bonds maturing in 2004. He wishes to hedge his position in options on
bonds, which reflect an 6% coupon ($100,000 face value per contract). The
. conversion factor of .9475 gives the difference between the cash position and the
6% coupons. How many options are used to provide a weighted hedge?
Responda
-
A. 28 calls
-
B. 29 puts
-
C. 29 calls
-
D. 28 puts
Questão 121
Questão
A storage hedge is used for protection when a weakening basis is anticipated:
Responda
- True
- False
Questão 122
Questão
In the daily clearing and settlement of 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 123
Questão
In futures trading, the Commodity Customer Agreement primarily serves the
following purpose:
Responda
-
A. To assure the customer of payment of funds such as customer margins
-
B. To absolve the exchange from responsibility for losses occurring in futures trading
-
C. To prevent a customer from filing a law suit against the brokerage firm
-
D. To allow the brokerage firm to offset positions in the account if margin calls are not met
Questão 124
Questão
The technical price range where the heaviest selling of a commodity futures
contract would be expected is called:
Responda
-
A. Selling range
-
B. Congestion area
-
C. Bear market
-
D. Resistance area
Questão 125
Questão
Buying a June 104 T-Bond put and selling a June 106 T-Bond put with June TBond
futures trading at 106-00 is:
Responda
-
A A vertical put spread
-
B: Initiated at a credit
-
C. A strangle
-
D. None of the above
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