2022年湖南金融英语考试考前冲刺卷（7）.docx

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1、2022年湖南金融英语考试考前冲刺卷（7）本卷共分为1大题50小题，作答时间为180分钟，总分100分，60分及格。一、单项选择题（共50题，每题2分。每题的备选项中，只有一个最符合题意） 1.Consider a stock put option with the following characteristics: Type of option: put option on stock Underlying asset: 100 shares of Dow Chemicals Exercise price : _ Premium: $1.44 per share Expiration da

2、te : October If the expiration-day price of Dow Chemicals were ST = $79.25, and this were known to be the breakeven dock price, what would the exercise price of the option beAA. $80.69.BB. $77.81.CC. $79.25. 2.DWR Services, Ltd. , arranges a plain vanilla interest rate swap between RWDY Enterprises

3、( pays fixed) and RED, InC. ( receives fixed). The swap has a notional value of $25000000 and 270 days between payments. LIBOR is currently at 7.0%. If at the time of the next payment (due in exactly 270 days) , RWDY receives net payments of $93750, the swap fixed rate is closest to:AA. 6.625%.BB. 6

4、.500%.CC. 7.500%. 3.Which of the following is an example of an arbitrage opportunity()A. A portfolio of two securities that will produce a certain return that is greater than the riskfree rate of interest.B. A stock with the same price as another has a higher rate of return.C. A stock with the same

5、price as another has a higher expected rate of return.4.123, Inc has entered into a plain-vanilla interest rate swap on $10000000 notional principal. 123 company receives a fixed rate of 6.5 percent on payments that occur at monthly intervals. Platteville Investments, a swap broker, negotiates with

6、another firm, PPS, to take the pay-fixed side of the swap. The floating rate payment is based on LIBOR ( currently at 4.8 percent). At the time of the next payment (due in exactly one month), 123, Inc will:()A. receive net payments of $42500.B. receive net payments of $14167.C. pay the dealer net pa

7、yments of $14167.5.Shigeo Kishiro recently purchased an American put option and Lendon Grey recently wrote an American call option on the same underlying stock, Tackel Sports (currently trading at $40 per share). Kishiro paid $2.75 for an exercise price of $38.00 and Grey received $3.75 for a strike

8、 price of $42. Assume that there are no transaction costs to exercise. At a stock price of $43:()A. if Grey exercises, he will have gained a total of $4.75.B. the intrinsic put value is $0 and the put is at-the-money.C. the intrinsic call value is $1.6.Financial derivatives contribute to market comp

9、leteness because:()A. the market with financial derivatives allows traders to more exactly shape the risk return characteristics of their portfolios.B. it is a market in which the owner of an option has the right to purchase the underlying good at a specific price, and this right lasts until a speci

10、fic date.C. it is a market in which any and all identifiable payoffs can be obtained by trading the securities available in the market.7.Assume the following information relating to a swap agreement. The swap covers a five-year period and involves annual payments on a $1000000 notional principal amo

11、unt. Party A is the pay-fixed counterparty and agrees to pay a fixed rate of 9% to Party B. In return, Party B, the receive-fixed counterparty, agrees to pay a floating rate of LIBOR to Party()A. Party A pays: A. $87500 each year to Party B.B. $90000 each year to Party B.C. $2500 each year to Party

12、B.8.Buying an interest-rate cap and selling an interest-rate floor is equivalent to:()A. buying a series of interest-rate calls and selling a series of interest-rate puts.B. buying a series of interest-rate puts and selling a series of interest rate calls.C. buying a series of interest-rate puts and

13、 calls.9.Concerning efficient financial( including derivative) markets, the most appropriate description is that()A. it is often possible to earn abnormal returns.B. the law of one price holds only in the academic literature.C. arbitrage opportunities rarely exist and are quickly eliminated.10.The o

14、ption position illustrated in the following profit/loss diagram depicts a: ()A. long call where the breakeven is $53.50.B. long call where the breakeven is $46.50.C. short put where the breakeven is $53.50.11.The value of an interest-rate call option at expiration is zero or the:()A. present value o

15、f, the market rate minus the exercise rate, adjusted for the period of the rate, times the principal amount.B. market rate minus the exercise rate, adjusted for the period of the rate, times the principal amount.C. present value of, the exercise rate minus the market rate, adjusted for the period of

16、 the rate, times the principal amount.12.The current market price of NTSC is $44 per share. One-year call options written on NTSC with strike price $50 are priced at $4.25. John Harris plans to implement a covered call strategy NTSC using these calls, and covering 1000 shares, What will the per-shar

17、e expiration profit/loss be on this strategy if the NTSC is priced at $56 at expirationAA. $16.25.BB. $10.25.CC. $4.25. 13.Consider the graph below.Assume a trader owns a share currently priced at $100. She writes a call option on this share with an exercise price of $110 and an assumed price of $4.

18、 For any stock price less than or equal to $110()A. she is $14 better off with the covered call than she would be with the stock alone.B. she is $4 worse off with the covered call than she would be with the stock alone.C. she is $4 better off with the covered call than she would be with the stock al

19、one.14.Party A enters into a plain vanilla 1-year interest rate swap agreement with Bank B in which he will make fixed-rate payments in exchange for receiving floating-rate payments based on LIBOR plus 100 basis points. Assume that payments are made quarterly in arrears based on a 360-day year. The

20、fixed rate on the swap is 6.5 percent. The current interest rates on 90, 180, 270, and 360-day LIBOR are 5.2 percent, 5.5 percent, 5.8 percent, and 6.0 percent, respectively. If the notional principal is $100 million, what will Party As net cash flow at the end of the first quarter equalAA. - $67500

21、0.BB. - $75000.CC. + $75000. 15.Which of the following statements regarding a futures trade of a deliverable contract is FALSE()A. The long is obligated to purchase the asset.B. The short is obligated to deliver the asset.C. Equilibrium futures price is known only at the end of the trading day.16.Jo

22、e Savvy wishes to speculate in March wheat futures by selling one contract Prior to selling the one contract, Joe had no position in wheat futures at all. He sells to Billy Bland who already had a short position in the March wheat futures contract. His sale of one futures contract will produce :()A.

23、 one contract of volume.B. one contract of open interest.C. both A and B.17.An options investor purchases one stock put option with the following characteristics: Type of option: put option on Hock Underlying asset: 100 shares of WalMart Exercise price: $47.50 per share Premium : $2.00 per share Exp

24、iration date : October If the expiration-day price of WalMart stock were $5000 per share, the profit/loss for the LONG put option would be:AA. - $2.00.BB. $0.50.CC. - $0.50. 18.Which of the following statements regarding the seller of a call and a put is TRUE A call writer:()A. expects the price of

25、the underlying stock to increase above the strike price and a put Writer expects the price of the underlying stock to decrease below the strike price.B. and a put writer both expect the price of the underlying stock to decrease below the strike price.C. expects the price of the underlying stock to d

26、ecrease below the strike price and a put writer expects the price of the underlying stock to increase above the strike price.19.Consider a swap with a notional principal of $120 million.Given the above diagrams, which of the following statements is TRUE At the end of 360 days :()A. A pays B $0.6 mil

27、lion.B. A pays B $6.6 million and B pays A $6 million.C. A pays B $13.2 million and B pays A $12 million.20.Financial derivatives contribute to market completeness by allowing traders to do all of the following EXCEPT :()A. increase market efficiency through the use of arbitrage.B. hedge positions i

28、n other assets and engage in high risk speculation.C. narrow the amount of trading opportunities to a more manageable range.21.Consider the following information: On May 1 Party A trades on the futures exchange to buy one oats contract of 10000 bushels for delivery in September. Party B has complime

29、ntary requirements. The price is $2 per bushel. Assume that the contract closes on May 2 at 190 cents per bushel. Assume the initial margin was $3000 and the maintenance margin $2500. Assume further that on May 3, the price has dropped to $1.80 per bushel. The price at which a maintenance margin cal

30、l will be received is equal to:AA. $2500.BB. $3000.CC. $500. 22.An at-the-money protective put position (comprised of owning the stock and buying a put) :()A. protects against loss at any stock price below the strike price of the put.B. has limited profit potential when the stock price rises.C. retu

31、rns any increase in the stock’s value, dollar for dollar, less the cost of the put.23.Which of the following statements regarding early termination of a forward contract is TRUE()A. There is no way to terminate a forward contract early.B. A party who enters into an offsetting contract to termi

32、nate has no risk.C. Early termination through an offsetting transaction with the original counterparty eliminates default risk.24.Two parties enter a three-year, plain-vanilla interest-rate swap agreement to exchange the LIBOR rate for a 10 percent fixed rate on $10 million. LIBOR is 11 percent now,

33、 12 percent at the end of the first year, and 9 percent at the end of the second year. If payments are in arrears, which of the following characterizes the net cash flow, to be received by the fixed-rate payerAA. $100000 at the end of year 2.BB. $100000 at the end of year 3.CC. $200000 at the end of

34、 year 2. 25.Some forward contracts are termed cash settlement contracts. This means:()A. either the long or the short in the forward contract will make a cash payment at contract expiration and the asset is not delivered.B. at settlement, the long purchases the asset from the short for cash.C. at co

35、ntract expiration, the long can buy the asset from the short or pay the difference between the market price of the asset and the contract price.26.ABEX Corporation common stock is selling for $50.00 per share. Both an American call option and a European call option are available on ABEX common, and

36、each have identical strike prices and expiration dates. Which of the following statements concerning these two options is TRUE ()A. Because the American and European options have identical terms and are written against the same common stock, they will have identical option premiums.B. The greater fl

37、exibility allowed in exercising the American option will normally result in a higher market value relative to an otherwise identical European option.C. The American option will have a higher option premium, because the American security markets are larger than the European markets.27.An options intr

38、insic value is equal to the amount the option is:()A. out of the money, and the time value is the market value minus the intrinsic value.B. in the money, and the time value is the intrinsic value minus the market value.C. in the money, and the time value is the market value minus the intrinsic value

39、.28.George Mote owns stock in IBM currently valued at $112 per share. Mote writes a call option on IBM with an exercise price of $120. The call option is sold for $1.80. At expiration, the price of IBM is $115. What is Motes profit (or loss) from his covered call strategy Mote:AA. gained $3.00.BB. l

40、ost $1.80.CC. gained $4.80. 29.The clearinghouses futures position is relatively low-risk because:()A. all its obligations to deliver are matched to other investors’ obligations to make delivery.B. it is highly capitalized and backed by large credit lines.C. of both A and B.30.Mary A Contrary

41、has a SHORT position in 15 November heating oil contracts. She buys 15 December heating oil contracts. Ms. Contrary has:()A. closed her futures position by offset.B. initiated a new LONG futures position in addition to her existing SHORT position.C. initiated an exchange-for-physicals (EFP).31.Which

42、 of the following statements about a currency swap is least accurate()A. Most currency swaps are done to exploit market inefficiencies.B. Notional principal is exchanged at the termination of the swap and the initiation of the swap.C. The periodic interest payments are exchanged in full each period.

43、32.A U. S. bank enters into a plain vanilla currency swap with a notional principal of US $100m ( 67m). At each settlement date, the U.S. bank pays a fixed rate of 8 percent on the pounds received, and an English bank pays a variable rate equal to London interbank offered rate (LIBOR) on the U. S. d

44、ollars received. Given the following information, what payment is made to whom at the end of year 2 The U. S. bank pays: ()A. US $5.5m and the English bank pays 5.36m.B. US $6m and the English bank pays 5.36m.C. 5.36m and the English bank pays US $5.5m.33.When using delivery as a method to close a f

45、utures contract, completion is usually achieved: ()A. when the trader transacts in the futures market to bring his or her net position in particular futures contract back to zero.B. when two traders agree to a simultaneous exchange of a cash commodity and futures contracts based on that cash commodi

46、ty.C. through the physical delivery of a particular good or by cash settlement.34.Which of the following statements is FALSE()A. In a currency swap, the notional principal is actually swapped twice, once at the beginning of the swap and again at the termination of the swap.B. The time frame of a swa

47、p is called its tenor.C. In a currency swap, only net interest payments are made.35.In October, James Knight owned stock in Valerio, Inc. , that was valued at $45 per share. At that time, Knight sold a call option on Valerio with an exercise price of $60 for $1.45. In December, at expiration, the stock is trading at $32. What is Knights profit (or loss) from his covered call strategy Knight:AA. lost $11.55.BB. lost $13.00.CC. gained $1.45. 36.Which of the following statements about put and call options is FALSE()A. The price of the option is less volatile than the price of the un