2.   You purchased 12 option contracts with a strike price of $55.00 and a premium of $1.25. At expiration, the stock was selling for $55.24 per share. What's the total profit or loss on your option position if you didn't exercise it prior to the expiration date?        A. –$876   B. –$1,424   C. –$2,424   D. –$1,212

A year ago, you bought 800 shares of a stock for a total of $13,200. The stock paid a dividend of $2.15 per share. Today, you sold those shares for $24.25 per share. What was your capital gains yield on this investment?        A. 46.97%   B. 42.73%   C. 52.15%   D. 32.15%

A year ago, you bought 500 shares of Apple stock at $98.44 a share. Over the past year, you received a total of $823 in dividends from the stock. Today, you sold your shares for $112.24 per share. What's your total return on this investment?        A. 15.69%   B. 18.32%   C. 12.44%   D. 16.21%

How is a stock in a margin account typically held?        A. In the name of the account from which the stock was borrowed   B. In street name   C. In the name of the company whose stock was purchased   D. In the name of the client Which one of the following statements is correct based on the historical returns for the period 1926-2012?        A. Small-company stocks outperformed large-company stocks every year during the period.   B. For the period, Treasury bills yielded a higher rate of return than long-term government bonds.   C. Bond prices, in general, were more volatile than stock prices.   D. The inflation rate exceeded the rate of return on Treasury bills during some years.  A taxable money market fund has an annual return of 3.85 percent. What's

the equivalent after-tax yield if the tax rate is 32 percent?        A. 2.62%   B. 2.87%   C. 4.51%   D. 4.23%  Which of the following statements regarding fixed-income securities is correct?        A. Fixed-income securities tend to rise in price when interest rates rise.   B. Fixed-income securities include money market instruments.   C. The current yield on a fixed-income security always equals its coupon rate.   D. All fixed-income securities are free from default risk.

Selling a stock you don't own is also known as a/an        A. hypothecation.   B. initial margin.   C. short sale.   D. margin sale.

You bought a stock nine months ago at $23 a share. Today, you sold that stock for $28.50 a share. The stock paid no dividends. What was your annualized rate of return?        A. 28.23%   B. 32.94%   C. 35.41%   D. 31.80%

Stacey purchased 300 shares of Coulter Industries stock and held it for 4 months before reselling it. What is the value of "m" when computing the annualized return on this investment?        A. 4.00   B. 3.00   C. .40   D. .33 Which of the following is a commonly used measure of volatility?        A. Total return   B. Standard deviation   C. The risk premium

   D. Dividend yield You own 600 shares of stock that you would like to have the right to sell at $50 a share. The $50 put is quoted at $.70 bid, $.75 ask. How much will it cost you to obtain the right to sell off your shares at $50 per share?        A. $450   B. $580   C. $325   D. $900

 You purchased five call option contracts with a strike price of $60 and an option premium of $2.14. You closed your contract on the expiration date when the stock was selling for $64 per share. What's your total profit or loss on the investment?        A. –$811   B. $1860   C. $930   D. –$524

 What entity guarantees up to $500,000 in securities in a brokerage account, $250,000 of which can be cash, from loss due to theft or fraud?        A. Federal Reserve   B. FIDC   C. SEC   D. SIPC

 A type of investment that allows an investor to speculate on the price of a financial index or commodity six months from now without making a payment today for that right is a        A. put option.   B. call option.   C. fixed-income security.   D. futures contract.

An asset had annual returns of 13, 12, 8, and –5 percent over the last four years. What's the variance of these returns?        A. .00782   B. .01234   C. .00687   D. .02342

 If you purchase $28,000 of stock by paying $21,000 in cash and borrowing the remaining $7,000, how much would the total assets be if you constructed a balance sheet to reflect this transaction?        A. $28,000   B. $12,000   C. $21,000   D. $9,000 The arithmetic return minus half the variance is approximately equal to the        A. geometric return.   B. variance.   C. standard deviation.   D. risk-free rate.  Which of the following is an example of the clustering illusion?        A. The belief that your knowledge about the market or a particular investment is superior to that of other investors   B. Purchasing more shares in mutual funds which have declined in value after they were purchased   C. Purchasing ETFs that have recently had superior returns   D. Greater willingness to sell stocks which have risen in value after being bought than to sell those which have declined

What is a floor trader?        A. A NASDAQ market maker   B. A NYSE member who trades solely for his or her own account   C. A specialist who makes a market in stocks on the NYSE   D. A futures market maker Where do sales of newly issued shares by the issuer to a shareholder occur?        A. Secondary market   B. Third market   C. NASDAQ   D. Primary market What's the third market?        A. The off-exchange market where exchange-listed securities trade   B. The CME   C. The NASDAQ   D. The market where initial public offerings are conducted.

 An investor reads a research report on a company's financial statements and invests based upon this report. What form of market efficiency must be in effect for the investor to earn excess profits from this investment?        A. Strong-form   B. Neutral-form   C. Weak-form   D. Arbitrage-form Given the following information, what is the value of the advance/decline line on the second day of this 4-day period?

Issues AdvancingIssues DecliningDay 1 2,322 2,589

Day 2 2,142 2,112

Day 3 2,598 2,989

Day 4 1,887 3,112

       A. 824   B. 568   C. –628   D. –432

In a recent survey 1,282 people indicated that they were bearish on the market for every 1,000 that are bullish. What's the value of the market sentiment index based on this information?        A. .4272   B. .8231   C. .5618   D. .6415

 What concept theorizes that investors value money differently depending on its source?        A. Law of small numbers   B. House money   C. Money illusion   D. Clustering effect 

  Which of the following best describes venture

capital?        A. Financing provided to fund new, high-risk ventures   B. Money raised by a company to finance its expansion   C. A convertible debenture offered by a corporation   D. An initial public offering of new shares to the general public

Which of the following best describes a bubble?        A. An extended period during which company earnings grow strongly   B. A period during which market prices decline significantly   C. A tendency of prices to gyrate up and down without establishing a clear direction   D. A period during which prices are much higher than analysis would predict them to be The process of purchasing newly issued shares from the issuer and reselling those shares to the general public is called        A. securing.    B. brokering.    C. underwriting.   D. capitalizing. 

The residual income model is used to value the stock of which type of company?        A. A company that pays a level dividend   B. A company that pays a rising dividend   C. A company with a 100 percent retention ratio   D. A company with a 50 percent retention ratio  In technical analysis, what type of signal is a steeply upward sloping advance/decline line thought to be?        A. Bearish   B. Neutral   C. Bullish   D. Bearish unless the condition lasts for at least 60 days  An index consists of the following securities and has an index divisor of 2.5.Stock  Shares

Outstanding   Beginning Share Price  Ending Share Price

A 4,000 $52 $45B 8,000 $18 $26C 2,000 $33 $39D 12,000 $51 $57

What's the price-weighted index return?        A. 10.33%   B. 9.32%   C. 11.54%   D. 8.44%

Which of the following best describes a support level?        A. The maximum point of a range in which a stock is expected to trade   B. The maximum price which the market can bear for a stock   C. The minimum expected return amount for a stock   D. The minimum price at which a stock is expected to trade  What are investors who use the MACD indicator most likely to do when the MACD rises above the signal line?        A. Buy a put on the security   B. Take no action   C. Sell the security   D. Buy the security Which of the following is used by some technical traders to help predict resistance and support lines?        A. Head and shoulders   B. MACD   C. Fibonacci numbers   D. Market sentiment Which of the following statements best describes the illusion of knowledge?        A. The belief that information that you possess is superior to information that's held by other investors   B. The belief that positive statements by corporate executives about their company's future prospects are likely to be true   C. The idea that because an investment manager has been right on past stock picks he or she will continue to make superior picks in the future.   D. The belief that publicly announced financial information has already been discounted in market prices.

Which of the following best describes a syndicate?        A. A group of dealers making a market in the same stock   B. A group of investors who band together to buy a large block of stock   C. A group of underwriters jointly working together to sell a new issue of securities

   D. A group of private equity investors who work together to purchase a public company

If all other variables remain constant, what will shortening the time to maturity do to the Macaulay duration of a straight bond?        A. Have no effect on the duration   B. Decrease the duration   C. Initially increase the duration, and then decrease it   D. Increase the duration  What's the risk that the bonds in a dedicated portfolio will decrease in value in response to an increase in interest rates?        A. Reinvestment risk   B. Price risk   C. Inflation risk   D. Systematic risk

Consider a money market instrument with 48 days to maturity and a quoted ask price of 99. Which two of the following statements are correct as they relate to this instrument?

I. The bond equivalent yield is an effective annual rate.II. The bank discount rate is lower than the bond equivalent yield.III. The bank discount rate is an effective annual rate.IV. The bond equivalent yield is lower than the effective annual rate.        A. II and IV only   B. I and III only   C. I and IV only   D. I and II only

A bond pays semiannual interest payments of $85.40. What's the coupon rate if the par value is $1,000?        A. 15.89%   B. 14.55%   C. 17.08%   D. 16.23%

A coupon rate exceeds both the yield to maturity and the current yield for which type of bond?        A. Par value   B. Discount   C. Premium

   D. Callable

Which one of the following debt instruments guarantees investors a positive real rate of return?        A. T-bill   B. zero-coupon bond   C. T-bond   D. TIPS

What's the expected future interest rate implied by current interest rates?        A. Discount rate   B. Forward rate   C. Nominal rate   D. Real rate

What does the dollar value of an 01 refer to?        A. The change in a bond's duration caused by the change in yield to maturity of one basis point   B. The change in a bond's duration caused by a one basis point change in its price   C. The change in a bond's price caused by the change in yield to maturity of one basis point   D. The change in a bond's yield caused by a one basis point change in its price

Which one of the following is a likely motive for the Federal Reserve to lower the discount rate?        A. Concern about a slowing economy   B. Fear that the market is in a bubble   C. Belief that the economy is in a Goldilocks state   D. Concern about an overheating economy Which one of the following statements is correct?        A. Treasury bill returns tend to vary in direct relation to inflation rates.   B. Short-term interest rates are affected by future inflation expectations.   C. The Fisher hypothesis advocates that real interest rates follow inflation rates.   D. All real interest rates will be positive as long as the inflation rate is positive.  What's the yield to call?        A. The bonus yield paid to bondholders when a bond is called   B. The yield that a bond earns when it's bought back at the earliest possible date   C. The current yield plus the risk-free yield   D. The yield that a bond earns when it's held beyond the call date

  What type of bond has a yield to maturity that's less than the coupon rate?        A. Municipal bond   B. Premium bond   C. Discount bond   D. Zero coupon bond The approximate nominal interest rate is computed as the real rate        A. plus the risk-free rate.   B. minus the risk-free rate.   C. minus the inflation rate.   D. plus the inflation rate.

 What does maturity preference theory propose?        A. Lenders must be financially rewarded for loaning funds on a long-term basis.   B. Short-term rates will be higher than long-term rates if the market is inverted.   C. Market expectations of future inflation drive interest rate levels.   D. A bond's duration is equal to its maturity minus its volatility.

 A Treasury bill has 65 days left to maturity. The bank discount yield on the bill is 4.25 percent. What's the effective annual rate?        A. 5.16%   B. 4.42%   C. 4.23%   D. 4.37%

The discount rate is the interest rate the Federal Reserve charges on loans to        A. consumers on credit card loans.   B. large businesses customers   C. commercial banks.   D. foreign governments.

If the market rate of a bond falls from 5.38 percent to 5.17 percent, by how many basis points has it declined?        A. 112   B. 12   C. 19   D. 21

  Which one of the following statements best describes the prime rate?        A. Main rate used by brokerage firms for margin loans to their clients   B. Rate charged by the Federal Reserve for overnight loans to banks   C. Rate charged by banks for loans to other banks   D. Bellwether rate for bank loans to businesses

 Which of the following statements best describes immunization?        A. Creating a portfolio that has the lowest possible reinvestment risk   B. Creating a portfolio that minimizes the uncertainty of the portfolio's maturity target date value   C. Building a portfolio in a way that maximizes its total return while minimizing risk.   D. Building a portfolio that has minimal interest rate risk  You plan to buy a bond at a quoted price of $987. The bond has a 5.0 percent coupon and pays interest semiannually on March 1 and September 1. What's the dirty price of this bond if today is May 1. (Assume a 360-day year.)        A. $987.21   B. $1021.84   C. $1002.59   D. $995.33 A stock has a return of 12.9 percent and a beta of 1.27. The market return is 12.6 percent and the risk-free rate is 4.13 percent. What's the Jensen alpha of this stock?        A. 1.56%   B. 1.73%   C. –1.56%   D. –1.73%

A risky asset has a beta of 1.72 and an expected return of 15.84 percent. What's the risk-free rate if the risk-to-reward ratio is 7.1 percent?        A. 4.21%   B. 4.58%   C. 3.94%   D. 3.63%

You own a portfolio comprised of 4 stocks and the economy has 3 possible states. Assume you invest your portfolio in a manner that results in an expected rate of return of 7.5 percent, regardless of the economic state. Given this, what must be value of the portfolio's variance be? 

       A. negative, but not -1   B. positive, but not +1   C. -1.0   D. 0.0

 If you invested $15,500 in the stock market with the expectation of earning 7.85 percent and actually earned 8.40 for the year, what would be the amount of your unexpected return?        A. 1.35%   B. .55%   C. .72%   D. 1.10%

 If a company announced earnings per share of $1.24 for the quarter when analysts expected earnings of $68, what is the amount of the surprise portion of the announcement?        A. $.51   B. $.32   C. $.56   D. $.42

 What's the variance of the returns on a security given the following information?State of Economy

Probability of State of Economy

Rate of Return if State Occurs

Boom .10 21 percentNormal .65 13 percentRecession .25 -8 percent       A. 84.52   B. 243.81   C. 96.85   D. 124.41 What does the Sharpe ratio measure?        A. A security's return relative to the total risk associated with that security   B. The amount of risk associated with a security as a function of its correlation to the market   C. A security's return relative to the return of the market   D. A security's expected return as compared to its standard deviation Of the following betas, which one has the highest level of systematic risk?     

   A. .94   B. 1.87   C. 1.13   D. 1.72

Which of the following statements is true of systematic risk?        A. It affects one asset class but not others   B. It affects only one specific firm   C. It affects a large number of assets   D. It's the same as interest rate risk A risky security has a variance of .052180 and a covariance with the market of .0314. The variance of the market is .02121. What's the correlation of the risky security to the market?        A. .91   B. .87   C. .83   D. .94

The extent to which the returns on two assets move together is called        A. covariance.   B. standard deviation.   C. correlation.   D. diversification.

To reduce risk as much as possible, you should combine assets which have one of the following correlation relationships?         A. Slightly positive    B. Strongly negative    C. Strongly positive    D. Slightly negative

Your portfolio is made up of 75 percent of stock A and 25 percent of stock B. What is the portfolio's expected rate of return?State Probabilit

y A B

Boom .15 26%33%Normal .85 7% 2%       A. 8.35   B. 8.73

   C. 9.05   D. 7.85

 If a stock has an expected return of 19.2 and a standard deviation of 15.9 percent, what's the smallest expected loss over the next month given a probability of 5 percent?        A. –5.65%   B. –5.31%   C. –4.89%   D. –5.92%

What's the primary goal of diversification?        A. Reducing taxes   B. Reducing some risks   C. Increasing portfolio return   D. Increasing portfolio yield  A portfolio has a 2.5 percent chance of losing 22 percent or more according to the VaR when T = 1. This can be interpreted as meaning that the portfolio is expected to have an annual loss of 22 percent or more once in every how many years?        A. 20   B. 5   C. 2.5   D. 40

The reward-to-risk ratio is 8.7 percent and the risk-free rate is 4.7 percent. What is the expected return on a risky asset if the beta of that asset is 1.28?        A. 15.84%   B. 14.76%   C. 7.92%   D. 12.31% Which of the following statements best describes a performance evaluation?        A. An accounting of a portfolio's raw return   B. An analysis of current market trends to determine future investment opportunities   C. An assessment of a money manager's ability to balance high returns with an acceptable level of risk   D. An assessment of the level of risk in a portfolio to determine whether immunization is necessary 

You own a stock with an overall expected return of 18.32 percent. The economy is expected to either boom or be normal. There's a 65 percent chance the economy will boom. If the economy booms, this stock is expected to return 23 percent. What's the expected return on the stock if the economy is normal?        A. 10.25%   B. 9.63%   C. 11.84%   D. 8.51%

 If the reward-to-risk ratio for two individual securities is equal, what does this mean according to the capital asset pricing model?        A. The risk involved in investing in the securities does not justify the potential reward.   B. The securities are correctly priced.   C. The securities are priced higher than they should be.   D. The securities are priced lower than they should be.

 How does the Black-Scholes option model express time?        A. In terms of years   B. On a quarterly basis   C. Semi-annually   D. In two-year periods Suppose you purchase five corn futures contracts. The contract size is 5,000 bushels and the price is quoted in cents per bushel. Assume the initial margin requirement is 6.5 percent of the contract value. What's the amount of the initial margin if the futures quote is 784?        A. $13,348   B. $12,980   C. $13,186   D. $12,740

Which of the following statements defines a European-style option?        A. An option that can be exercised at any time   B. An option that's in-the-money   C. An option that can only be exercised at expiration   D. An option that's out-of-the-money Which one of the following is a difference between a forward contract and a futures contract?     

   A. A forward contract is a formal agreement while a futures contract is an informal agreement.   B. Futures contracts are managed through an organized exchange while forward contracts are not.   C. The price of the asset exchanged is determined when a forward contract is entered while the price is set on the exchange date for a futures contract.   D. Forward contracts are based on commodities while futures contracts are based on financial instruments. 

 Which of the following best describes a speculator?        A. An investor who purchases government bonds   B. An investor who purchases Treasury bills   C. An investor who accepts the risk of loss for the chance to earn a profit   D. An investor who invests only in risk-free securities

What type of asset is a patent?        A. Tangible fixed asset   B. noncash short-term asset   C. Intangible fixed asset   D. Intangible long-term liability

A company has $8,300 of cash, equipment worth $87,500, inventory of $49,600, a building worth $345,000, and $72,400 of accounts receivable. What's the value of the total fixed assets?        A. $554,500   B. $432,500   C. $562,800   D. $482,100

Silver is currently trading for $18.32 an ounce, while the six- month futures price is $18.54. If you believe that silver will actually sell for $18.89 in six months, which of the following positions in silver should you take today?        A. Sell in the future market   B. Take a long position in the future market   C. Take a short position in the futures market   D. Take a short position in the spot market Suppose you have an equity portfolio valued at $15.6 million with a beta of 1.57. You decide to hedge the portfolio using SPX call option contracts. The S&P 500 index is currently 1946. The option delta is .823. How many option contracts must you write to effectively hedge the portfolio? 

       A. 146 contracts   B. 138 contracts   C. 128 contracts   D. 153 contracts

Your broker requires an initial margin of $7,050 per futures contract on wheat and a maintenance margin of $5,000 per contract. Wheat futures contracts are based on 5,000 bushels and quoted in cents per bushel. You sold one wheat futures contract yesterday at the closing settlement price quote of 723. Today, the settlement quote is 854. Will you receive a margin call and if so, for what amount? All margin calls restore the margin level to its initial level.        A. Yes; $550   B. Yes; $4,500   C. Yes; $6,550   D. No Which of the following is most closely associated with convexity?        A. The graphical relationship between stock prices and option prices   B. The relationship between a stock's beta and its total return   C. The relationship between risk and return   D. The graphical relationship between put and call prices Which of the following reports is filed with the SEC on an annual basis?        A. 10Q   B. 10K   C. Prospectus   D. Red herring

 Which of the following is the minimum margin required in a futures account at all times?        A. Close-out margin   B. Initial margin   C. Starting margin   D. Maintenance margin  Which of the following features apply to a futures contract?

I. zero-sum gameII. derivative securityIII. maturity dateIV. settlement procedure

       A. I and III only   B. I and II only   C. II and III only   D. I, II, III, and IV

 Suppose you manage an $858 million bond portfolio with a duration of 7.32 years. You want to hedge the portfolio with Treasury note futures that have a duration of 7.68 years and a futures price of 114. U.S. Treasury note futures contracts are based on a par value of $100,000 and quoted a percentage of par. How many contracts will you need to sell to complete this hedge?        A. 7,174 contracts   B. 9,391 contracts   C. 8,236 contracts   D. 7,532 contracts Which of the following will result from an increase in return on equity?        A. Increase in fixed costs   B. Decrease in fixed costs   C. Decrease in cash on the balance sheet   D. Increase in the tax rate

If you own 5 SPX call options with a strike of 1950, what's the payoff at maturity for these option contracts if the S&P 500 index is at 1963?        A. $6,500   B. $0   C. $1,300   D. $5,000 A company has net sales of $438,500, operating expenses of $131,400, depreciation of $25,000, cost of goods sold of $388,000, and interest expense of $32,000. What's the operating margin?        A. 12.2%   B. 14.6%   C. 13.8%   D. 11.9%

Which of the following best explains why many corporations issue employee stock options?        A. To replace employer-provided insurance benefits   B. To reduce the cost of employee compensation

   C. To align management and shareholder interests   D. To provide an employee benefit in place of a retirement plan  Suppose you own 300 shares of a stock which is currently worth $18 a share. You just paid an option premium of $.65 to buy one put contract on this stock with a strike price of $15. What's the maximum loss per share you are avoiding by purchasing the option contract?        A. $18   B. $13   C. $15   D. $15.65

A STRIPS matures in 5 years, has a face value of $25,000, and has yield to maturity of 5.4 percent. What's the price?        A. $17,914.98   B. $18,725.33   C. $16,542.14   D. $19,152.95

Which of the following best defines fiscal policy?        A. Corporate determination of spending priorities   B. Adjustment of interest rate levels by the Federal Reserve   C. Open market operations conducted by the Federal Reserve   D. Government determination of tax rates and spending policies

Regulation FD requires companies to do which one of the following when disclosing material non-public information?        A. Disclose the information without preference to any party or parties   B. Disclose the information only after a 24-hour delay   C. Only disclose the information after a 7-day advance notice of an announcement   D. Advise the SEC 7 working days prior to such disclosure A Treasury bond has a dollar price of $1038.54. What would the bond quote be?        A. 103.35   B. 103:27   C. 103:22   D. 103:11

How often do U.S. Treasury bonds make coupon payments? 

       A. Quarterly   B. Semiannually   C. Annually   D. Monthly

Which of the following statements is the best description of a budget deficit?        A. When government income exceeds government expenditures   B. When nominal government revenues exceed real government revenues   C. When GDP exceeds tax revenue   D. When government expenditures exceed tax revenue M1 plus time deposits, saving accounts, and money markets is known as _____ money supply.        A. M3   B. M5   C. M4   D. M2

A corporate bond yields 8.5 percent and a municipal bond yields 5.2 percent. What's the critical marginal tax rate?        A. 39.35%   B. 41.78%   C. 40.23%   D. 38.82% Consider the following information on GDP and CPI for an economy over the last 4 years:

GDP CPI

2012112.4 101.2

2013118.3 102.1

2014118.3 102.9

2015122.8 103.8

Based on the table, calculate nominal GDP growth for 2015.        A. 2.89%   B. 2.51%   C. 3.80%   D. 3.95%

 A STRIPS has a $15,000 par value and a market value of $13,894. The time to maturity is 7 years. What's the yield to maturity?        A. 2.12%   B. 1.10%   C. 2.53%   D. 1.59% Which of the following best defines the bid-ask spread?        A. The difference between the price at which a bond can be called and its current price   B. The difference between the price at which a bond is issued and at which it trades   C. The difference between the price a bond dealer is willing to pay to buy and the price at which he or she is willing to sell   D. The sum of the price at which a bond dealer is willing to pay to buy and the price at which he or she is willing to sell

 Unsecured debt is debt issued        A. with a call provision.   B. with collateral that's less than the total value of the debt.   C. with security through a corporation's cash flow.   D. without specific collateral pledged as security.

 Of the following uses of proceeds from private activity bonds, which will most likely qualify as exempt from federal taxes?        A. Public transportation hub   B. Office building   C. Dance hall   D. Football stadium Which of the following is one of Michael Porter's Five Forces?        A. Interest rate risk   B. Bargaining power of buyers   C. Threat of new technology   D. Inflation risk

Which of the following reports are always included in a 10K filing with the SEC?

I. statement of cash flowsII. balance sheetIII. pro-forma statement

IV. income statement 

       A. I, II, and IV only   B. I, II, III, and IV   C. II, III, and IV only   D. IV only  A stock is currently priced at $22 a share while the $30 put option is priced at $5.22. The put option delta is -.25. What is the approximate put price if the stock increases in value to $25?        A. $5.08   B. $4.97   C. $3.76   D. $5.27A stock is currently priced at $44 a share while the $45 call option is priced at $1.22. The call option delta is .86. What is the approximate call price if the stock increases in value to $45?        A. $1.98   B. $0.96   C. $0.26   D. $2.08

What's the labor force participation rate?        A. The labor force divided by the unemployment rate   B. The total civilian population divided by the unemployment rate   C. The labor force divided by the nonmilitary working-age population   D. The unemployment rate divided by the total population  Given a set of variables, the Black-Scholes option pricing formula has a put option delta of -.154. What is the call delta given these same variables?        A. 1.154   B. -1.154   C. -.846   D. .846 A conversion provision enables a bondholder to        A. exchange a bond for government bonds of equal value after a certain amount of time.   B. exchange a bond for cash after a certain amount of time.   C. sell a bond back to the company at par at any time.   D. exchange a bond for a prescribed number of shares of the same issuer.