Assume it is now January. The current 1-year riskless interest rate is

1.The 6-month forward price of commodity X is USD 1,000. Six-month, risk-free, zero-coupon bonds with face value USD 1,000 trade in the fixed-income market. When taken in the correct amounts, which of the following strategies creates a synthetic long position in commodity X for a period of 6 months? 选项： A:Buy the forward contract and buy the zero-coupon bond. B:Buy the forward contract and short the zero-coupon bond. C:Short the forward contract and buy the zero-coupon bond. D:Short the forward contract and short the zero-coupon bond.

2.Supposethe futures price is below the price predicted by IRP. What stepswould assure an arbitrage profit? ( ) 选项： A、Goshort in the spot market, go long in the futures contract. B、Golong in the spot market, go short in the futures contract. C、Goshort in the spot market, go short in the futures contract. D、Golong in the spot market, go long in the futures contract.

3.In a __________ contract you can effectively lock in the price at which you buy or sell a foreign currency at a set date in the future. 选项： A、Securities spot B、Securities futures C、Currency futures D、Spot foreign exchange

4.A(n) __________ contract locks in the price at which you buy or sell a foreign currency at a set date in the future.选项： A:securities spot; B:securities futures; C:currency spot; D:currency futures

5.Suppose that there are only three securities in the market: GM stock ($66 billion), Toyota stock ($22 billion) and the risk-free government bond ($12 billion). Now, there are two rational investors planning to allocate $100,000 to the above securities. Given that Investor 1 has higher risk averse than Investor 2, and that Investor 1 invests $24,000, $57,000 and $19,000 in GM stock, Toyota stock and riskless bond, respectively, then which of the following situations is a possible investment of Investor 2 if the CAPM valid?选项： A:$12,000 in riskless bond, $66,000 in GM stock and $22,000 in Toyota stock; B:$12,000 in riskless bond, $78,000 in GM stock and $10,000 in Toyota stock; C:$48,000 in riskless bond, $39,000 in GM stock and $13,000 in Toyota stock; D:$48,000 in riskless bond, $42,000 in GM stock and $10,000 in Toyota stock

6.Assume you enter into 5 long futures contracts to buy July gold for $1,400 per ounce. A gold futures contract size is 100 troy ounces. The initial margin is $14,000 per contract and the maintenance margin is 75% of the initial margin. What change in the futures price of gold will lead to a margin call? 选项： A:$35 drop B:$70 drop C:$175 drop D:$350 drop

7.Which of the following mechanisms would not be used by a country to defend a fixed exchange rate? 选项： A、The government can buy or sell foreign currency to influence the actual exchange rate. B、The government can threaten to shift to a floating exchange rate. C、The government can impose a form of exchange control. D、The government can alter domestic interest rates to influence short-term international capital flows.

8.Suppose that there are only three securities in the market: GM stock ($66 billion), Toyota stock ($22 billion) and the risk-free government bond ($12 billion). Now, there are two rational investors planning to allocate $100,000 to the above securities. Given that Investor 1 has higher risk averse than Investor 2, and that Investor 1 invests $24,000, $57,000 and $19,000 in riskless bond, GM stock and Toyota stock, respectively, then which of the following situations is a possible investment of Investor 2 if the CAPM valid?选项： A:$12,000 in riskless bond, $66,000 in GM stock and $22,000 in Toyota stock; B:$12,000 in riskless bond, $78,000 in GM stock and $10,000 in Toyota stock; C:$48,000 in riskless bond, $39,000 in GM stock and $13,000 in Toyota stock; D:$48,000 in riskless bond, $42,000 in GM stock and $10,000 in Toyota stock

9.On June 12, 2015, you go short 500 ounces gold futures with maturity of three months and the initial margin requirement is $20,000. If the future price closes 5 dollars per ounce higher on the next trading day, then your margin account will leave money of $20,000+$2,500=$22,500.选项： A:正确; B:错误

10.On June 12, 2016, you go short 500 ounces gold futures with maturity of three months and the initial margin requirement is $20,000. If the future price closes 5 dollars per ounce higher on the next trading day, then your margin account will leave money of $20,000+$2,500=$22,500.选项： A:正确; B:错误

11.Which of the following is NOT a means by which a country can defend a fixed exchange rate? 选项： A、The government can buy or sell foreign currency in order to influence the actual exchange rate. B、The government can allow the currency to float and the resulting market rate will be equal to the intended rate in the fixed exchange rate regime. C、The government can impose a form of exchange control. D、The government can alter domestic interest rates in order to influence short-term capital flows.

12.Which of the following is not a means by which a country can defend a fixed exchange rate?选项： A:Government can buy or sell foreign currency in order to influence the actual exchange rate.; B:Government can allow the currency to float and the resulting market rate will be equal to the intended rate in the fixed exchange rate regime.; C:Government can impose a form of exchange control.; D:Government can alter domestic interest rates in order to influence short-term capital flows.

13.Which of the following is NOT a means by which a country can defend a fixed exchange rate? 选项： A、The government can buy or sell foreign currency in order to influence the actual exchange rate. B、The government can allow the currency to float and the resulting market rate will be equal to the intended rate in the fixed exchange rate regime. C、The government can impose a form of exchange control. D、The government can alter domestic interest rates in order to influence short-term capital flows.

14.Which of the following mechanisms cannot be adopted by a country to defend a fixed exchange rate?____. 选项： A、The government can buy or sell foreign currency in order to influence the actual exchange rate. B、The government can allow the currency to self-adjust and the resulting market rate will be equal to the intended rate in the fixed exchange rate regime. C、The government can impose a form of exchange control. D、The government can alter domestic interest rates in order to influence short-term capital flows.

15.Which of the following mechanisms cannot be adopted by a country to defend a fixed exchange rate? ( ) 选项： A:The government can buy or sell foreign currency in order to influence the actual exchange rate. B:The government can allow the currency to self-adjust and the resulting market rate will be equal to the intended rate in the fixed exchange rate regime. C:The government can impose a form of exchange control. D:The government can alter domestic interest rates in order to influence short-term capital flows.

16.When the futures price on euros is below the forward rate on euros for the same settlement date, astute investors may attempt to simultaneously ____ euros forward and ____ euro futures.选项： A:sell; sel; B:buy; sell; C:sell; buy; D:buy; buy

选项： A:The arbitrageur should short the 1-and 2-year zero-coupon bonds and buy the 2-year coupon bond. B:The arbitrageur should buy the 1- and 2-year zero-coupon bonds and short the 2-year coupon bond. C:The arbitrageur should buy the l-year zero-coupon and 2-year coupon bond and short the 2-year zero-coupon bond. D:The arbitrageur should short the l-year zero-coupon and 2-year coupon bond and buy the 2-year zero-coupon bond.">17.Given the information in the table below and given that the 2-year spot rate is 10.263%, what is the appropriate action of an arbitrageur? Assume annual coupons and compounding.

选项： A:The arbitrageur should short the 1-and 2-year zero-coupon bonds and buy the 2-year coupon bond. B:The arbitrageur should buy the 1- and 2-year zero-coupon bonds and short the 2-year coupon bond. C:The arbitrageur should buy the l-year zero-coupon and 2-year coupon bond and short the 2-year zero-coupon bond. D:The arbitrageur should short the l-year zero-coupon and 2-year coupon bond and buy the 2-year zero-coupon bond.

18.Which of the following mechanisms cannot be adopted by a country to defend a fixed exchange rate?____. 选项： A、The government can buy or sell foreign currency in order to influence the actual exchange rate. B、The government can allow the currency to self-adjust and the resulting market rate will be equal to the intended rate in the fixed exchange rate regime. C、The government can impose a form of exchange control. D、The government can alter domestic interest rates in order to influence short-term capital flows.

19.In reference to the futures market, a "speculator" 选项： A、attempts to profit from a change in the futures price. B、wants to avoid price variation by locking in a purchase price of the underlying asset through a long position in the futures contract or a sales price through a short position in the futures contract C、stands ready to buy or sell contracts in unlimited quantity. D、both b and c

20.Which of the following would improve the current ratio? ( ) 选项： A、Sell fixed assets to reduce accounts payable. B、Issue long-term debt to buy inventory. C、Borrow short term to finance additional fixed assets. D、Sell common stock to reduce current liabilities.

21.In reference to the futures market, a "speculator" 选项： A、attempts to profit from a change in the futures price. B、wants to avoid price variation by locking in a purchase price of the underlying asset through a long position in the futures contract or a sales price through a short position in the futures contract C、stands ready to buy or sell contracts in unlimited quantity. D、both b and c