Stock Quiz – Advanced 4 Created on December 15, 2020 By Eddie Vorman Stock Quiz - Advanced If you successfully finished our other quizzes about stocks, then you already know all the basics. But what about the more challenging stuff? Here are some questions that require more than passable knowledge. Are you ready for them? Let’s begin and see: 1 / 8 What does Book value refer to? The value of the company without its tangible assets The theoretical value of the company if all assets are liquidated or sold at prices shown on the balance sheet The value of the stock as done by the external appraiser 2 / 8 Do you know when an investment is well-hedged? When an investor limits losses on a particular stock by establishing an opposite position in the same one When it is protected against losses Both answers are correct 3 / 8 Financial futures contracts are actively traded on the following indexes except for: The New York Stock Exchange Index The Dow Jones Industrial Index The S&P 500 Index The Nikkei Index All of the above indices have actively traded futures contracts 4 / 8 Which of the following items is specified in a futures contract? The acceptable grade of the commodity on which the contract is held The contract size The settlement price All of the above 5 / 8 If the S&P 500 Index futures are overpriced relative to the spot S&P 500 Index, how could you make an arbitrage profit? By selling S&P 500 Index futures and buying all the stocks in the S&P 500 By selling short all the shares in the S&P 500, while buying S&P Index futures By selling all the shares in the S&P 500, while buying call options on the S&P 500 index By buying all the stocks in the S&P 500, while selling put options on the S&P 500 index None of the above 6 / 8 Delivery of stock index futures… Is made by delivering 100 shares of each stock in the index Is never made Requires the delivery of 1 share of each stock in the index Is made by a cash settlement based on the index value 7 / 8 The expectations hypothesis of futures pricing… States that the futures price equals the expected value of the future spot price of the asset Is the simplest theory of futures pricing Both answers are correct None of the above 8 / 8 What does open interest include? The sum of short and long positions Only long or short positions, but not both The sum of long or short positions and clearinghouse positions The sum of short, long, and clearinghouse positions Your score is The average score is 47% LinkedIn Facebook Twitter VKontakte 0% Restart quiz Support Platform Spread Trading Instrument Comments Rating 0 (0 reviews)
