FundamentalsofFuturesandOptionsMarkets,8e(Hull)testbankchapter1－24.docx

1、F u n da m en ta l s of F u tu r es a n d Option s M a rk ets, 8 e ( H u l l ) C h a p ter 1In tr od u ction1) ) A one-y ear forw ard contract i s an ag reem ent w hereA ) One side has the rig ht to buy an asset for a certain price in one y ears timeB ) One side has the obligation to buy an asset fo

2、r a certain price in one y ears time C ) One side has the oblig a tion to buy an asset for a certain price a t some time during the next y earD) One side has the oblig a tion to buy an asset for the mark et price in one y ears timeA nsw er:B2) ) W hich of the follow ing is NOT true?A ) W hen a C B O

3、E call option on IB M i s exercised, IB M i ssues more stock B ) A n A merican option can be exercised at any time during i ts li feC ) A n call option w i l l a lw ay s be ex ercised at maturity i f the underly ing asset price i s g reater than the strike priceD) A put option w il l a lw ay s be ex

4、 ercised at maturity i f the strike price i s g reater than the underly ing asset priceA nsw er:A3) ) A one-y ear call option on a stock w ith a strike price of $ 30 costs $ 3 ; a one-y ear put option on the stock w i th a strike price of $ 30 costs $ 4 . S uppose that a trader buy s tw o call optio

5、ns and one put option. The breakeven stock price above w hich the trader makes a profit i sA ) $ 35 B ) $ 40 C ) $ 30 D) $ 36A nsw er:A4) ) A one-y ear call option on a stock w ith a strike price of $ 30 costs $ 3 ; a one-y ear put option on the stock w i th a strike price of $ 30 costs $ 4 . S uppo

6、se that a trader buy s tw o call options and one put option. The breakeven stock price below w hich the trader makes a profit i sA ) $ 25 B ) $ 28 C ) $ 26 D) $ 20A nsw er:D95) ) W hich of the follow ing i s approximately true w hen size i s measured in terms of the underly ing principal amounts or

7、value of the underly ing assets?A ) The exchang e-traded mark et i s tw ice as big as the over-the-counter market B ) The over-the-counter market i s tw ice as big as the exchang e-traded marketC ) The ex chang e-traded mark et i s ten times as big as the ov er-the-counter marketD) The over-the-coun

8、ter market i s ten times as big as the exchang e-traded market A nsw er:D6) ) W hich of the follow ing best describes the term spot price? A ) The price for im mediate deliveryB ) The price for delivery at a future timeC ) The price of an asset that has been damag edD) The price of renting an asset

9、A nsw er:A7) ) W hich of the follow ing i s true about a long forw ardcontract?A ) The contract becomes more valuable as the price of the asset declines B ) The contract becomes more valuable as the price of the asset risesC ) The contract i s w orth zero i f the price of the asset declines after th

10、e contract has been entered intoD) The contract i s w orth zero i f the price of the asset ri ses after the contract has been entered intoA nsw er:B8) ) A n investor sells a futures contract an asset w hen the futures price i s $ 1,500 . Each contract i s on 100 units of the asset. The contract i s

11、closed out w hen the futures price i s $ 1 ,540 . W hich of the follow ing i s true?A ) The investor has made a g a in of $ 4 ,000 B ) The investor has made a loss of $ 4 ,000 C ) The investor has made a g ain of $ 2 ,000D) The investor has made a loss of $ 2 ,000 A nsw er:B9) ) W hich of the follow

12、 ing describes European options? A ) S old in EuropeB ) Priced in EurosC ) Ex ercisable only at maturityD) C a l ls ( there are no puts) A nsw er:C10 ) W hich of the follow ing is NOT true?A ) A call option g ives the holder the rig ht to buy an asset by a certain date for a certain priceB ) A put o

13、ption g ives the holder the rig ht to sell an asset by a certain date for a certain priceC ) The holder of a call or put option must ex ercise the rig ht to sell or buy anassetD) The holder of a forw a rd contract i s oblig a ted to buy or sell an asset A nsw er:C11 ) W hich of the follow ing i s NO

14、T true about call and put options? A ) A n A merican option can be ex ercised at any time during i ts lifeB ) A European option can only be exercised only on the maturity dateC ) Investors must pay an upfront price (the option premium) for an option contractD) The price of a call option increases as

15、 the strike price increases A nsw er:D12 ) The price of a stock on July 1 i s $ 57 . A trader buy s 100 call options on the stock w i th a strike price of $ 60 w hen the option price i s $ 2 . The options are exercised w hen the stock price i s $ 65 . The traders net profit isA ) $ 700B ) $ 500C ) $ 300D) $600A nsw er:C13 ) The price of a stock on February 1 i s $ 124 . A trader sells 200 put options on the stock w ith a strike price of $ 120 w hen the option price i s $ 5 . The options are exercis