THỊ TRƯỜNG TÀI CHÍNH

1. You have agreed to deliver the underlying commodity on a futures contract

in 90 days. Today the underlying commodity price rises and you get a
margin call. You must have:
a. purchased a forward contract
b. purchased a call option on a futures contract
c. a long position in a futures contract
d. sold a forward contract
e. a short position in a futures contract
2. A bank with short-term, floating-rates assets funded by long-term, fixed-
rateliabilities could hedge this risk by,
1.I. buying a T-bond futures contract
2.II. buying options on a T-bond futures contract
3.III. entering into a swap agreement to pay a fixed rate and receive a variable
rate.
4.IV. entering into a swap agreement to pay a variable rate and receive a fixed
rate.
a. II and IV only
b. IV only
c. I, II, and IV only
d. I and III only
e. III only
3. Two competing fully electronic derivatives markets in the United States are:
a. CME and Pacific Exchange.
b. NYSE and ABS
c. Philadelphia Exchange and AMEX
d. D-Trade and IMM
e. CME Globex and Eurex
4. A bank lender is concerned about the creditworthiness of one of its
majorborrowers. The bank is considering using a swap to reduce its credit
exposure to this customer. Which type of swap would best meet this need?
a. Credit default swap
b. DIF swap
c. Currency swap
d. Interest rate swap
e. Equity linked swap
5. What of the following is true?
 a. Futures contracts are only traded over the counter.-a fully balanced position
b. Forward contract buyers and sellers do not know who the counterparty is.
c. Forward contracts have no default risk
d. Futures contracts require an initial margin requirement be paid.
e. Forward contracts are marked to market daily.
7. A contract that gives the holder the right to sell a security at a preset
priceonly immediately before contract expiration is a(n):
a. European call option
b. knockout option
c. European put option
d. American call option
e. American put option
8. The higher the exercise price, the………… the value of a put and the……….
the value of a call.
a. higher; lower
b. lower; lower
c. higher; higher
d. lower; higher
9. New futures contracts must be approved by:
a. the SEC
b. the Warren Commission
c. the NYSE
d. the Federal Reserve
e. the CFTC
10. A bank with long-term, fixed-rate assets funded with short-term,rate-
sensitive liabilities could do which of the following to limit their interest rate
risk?
1.I. Buy a cap
2.II. Buy an interest rate swap
3.III. Buy a floor
4.IV. Sell an interest rate swap
a. III and IV only
b. I and IV only
c. II and III only
d. III only
e. I and II only
1. European investor can earn a 4.75 percent annual interest rate in Europe or
2.75 percent per year in the United States. If the spot exchange rate is $1.58
per euro, at what one-year forward rate would an investor be indifferent
between the U.S and Japanese investments?
a. $1.5484
b. $1.5977
c. $1.5498
d. $1.5335
e. $1.6108
2. If the dollar appreciates relative to the euro then:
a. the price of cars will not be affected
b. European cars will become more expensive in the United States
c. American cars will become less expensive in Europe
d. European cars will become less expensive in the United States
e. American cars will become less expensive in United States
3. A Japanese investor can earn a 1 percent annual interest rate in Japan
orabout 3.5 percent per year in the United States. If the spot exchange rate is
101 yen to the dollar, at what one-year forward rate would an investor be
indifferent between the U.S and Japanese investments?
a. yên 98.56
b. yên 103.50
c. yên 100.58
d. yên 101.68
e. yên 97.42
4. Bank’ net foreign exposure is equal to:
a. none of these choices are correct
b. net foreign assets
c. net foreign assets + net FX bought
d. assets - liabilities
e. net FX bought
5. If a firm has more foreign currency assets than liabilities, and no other
foreigncurrency transactions, it has:
a. a fully balanced position
b. zero net exposure
c. positive net exposure
d. negative net exposure
6. At the beginning of the year the exchange rate between the Brazilian real
andthe U.S. dollar was 2.2 reals per dollar. Over the year, Brazilian inflation
was 12 percent and U.S. inflation was 4 percent. If purchasing power parity
holds, at year-end the exchange rate should be approximately…………..
dollars per real.
a. 0.4895
b. 2.3913
c. 0.3440
d. 2.8498
e. 0.4182
7. A negotiated OTC agreement to exchange currencies at a fixed date in
thefuture but at a exchange rate specified today is a:
1. currency futures contract
2. forward foreign exchange transaction
3. spot foreign exchange transaction
4. currency options contract
5. currency swap agreement
1. A 15-year corporate bond pays $40 interest every six month. What is the
bond’s price if the bond’s promised YTM is 5.5 percent?
a. $1,263.45
b. $1,261.32
c. $1,250.94
d. $1,264.79
e. $1,253.12
2. An eight-year corporate bond has a 7 percent coupon rate. What should be
the bond’s price if the required return is 6 percent and the bond pays
interest semiannually?
a. $1,062.10
b. $1,062.81
c. $1,053.45
d. $1,052.99
e. $1,049.49
3. 3. All is held constant ,the _____the coupon and the ______ the maturity; the
______the duration of a bond.
a. larger; longer;longer
b. larger; longer; shorter
c. smaller; shorter; shorter
 d. None of these choices are correctct
e. smaller; shorter;longer
4. 4. An annual payment bond has a 9 percent required return. Interest rates
are projected to fall 25 basis points. The bond’s duration is 12 years. What is
the predicted price change?
a. 33.33%
b. -2.75%
c. -1.95%
d. 1.95%
e. 2.75%
5. An eight -year ,annual payment,7 percent coupon Treasury bond has a price
of$ 1,075. The bond’s annual expected rate of return must be:
a. 4.25 percent
b. 13.49 percent
c. 5.80 percent
d. 1.69 percent
e. 7.00 percent
6. Corporate Bond A returns 5 percent of its cost in PV terms in each of the
firstfive years and 75 percent of its value in the six year .Corporate Bond B
returns 8 percent of its cost in PV terms in each of the first five years and 60
percent of its cost in the sixth year. If A and B have the same required
return, Which of the following is/ are true?
1.I. Bond A has a bigger coupon than Bond B.
2.II. Bond A has a longer duration than Bond B.
3.III. Bond A is less price -volatile than Bond B.
4.IV. Bond B has a higher PV than Bond A.
a. I,II,and IV only
b. II and IV only
c. I,III and IV only
d. I,II,III, and IV
e. III only
7. An annual payment bond with a $1,000 par has a 5 percent quoted
couponrate, a 6 percent promised yield to maturity, and six years to
maturity. What is the bond’s duration?
a. 4.76 years
b. 5.31 years
c. 3.19 years
 d. 5.25 years
e. 4.16 years
8. A 10-year,annual payment corporate coupon bond has an expected return of
11 percent and a required return of 10 percent. The bond’s market price is:
a. less than its expected rate or return
b. less than its present value.
c. $1,000.00
d. less than par
e. greater than its present value
9. A bond that pays interest annually has a 6 percent promised yield and a
priceof $1.025. Annual interest rates are now projected to fall 50 basis points.
The bond’s duration is six years. What is the predicted new bond price after
the interest rate change? (Do not round on intermediate calculations)
a. $995.99
b. $1,042.33
c. None of these choices are correct
d. $987.44
e. $1,054.01
10. The interest rate used to find the present value of a financial security is the:
a. required rate of return
b. expected rate of return
c. realized rate of return
d. realized yield to maturity
e. current yield
Câu 1: A T-bond with a $1,000 par is quoted at 97-14 bid, 97-15 ask. The
clean price for you to buy this bond is a. $975.77.
b. $974.69.
c. $974.38.
d. $975.42.
Câu 2: A Treasury security in which periodic coupon interest payments can
be separated from each other and from the principal payment is called a a.
STRIP
b. T-note
c. Revenue bond
d. T-bond
Câu 3: An 18-year T-bond can be stripped into how many separate securities?
a. 36
b. 18
c. 37
d. 19
Câu 4: Which one of the following bonds is likely to have the highest required
rate of return, ceteris paribus?
a. AAA-rated non-callable corporate bond with a sinking fund
b. AAA-rated callable corporate bond with a sinking fund
c. AA-rated callable corporate bond with a sinking fund
d. AA-rated callable corporate bond without a sinking fund
Câu 5: When an investment banker purchases an offering from a bond
issuer and then resells it to the public, this is known as a a. rights offering.
b. standby offering.
c. private placement.
d. firm commitment.
Câu 1: Which one of the following statements about commercial paper is not
true? Commercial paper issued in the United States a. has no secondary
market.
b. is virtually always rated by at least one ratings agency.
c. has a maximum maturity of 270 days.
d. carries an interest rate above the prime rate.
Câu 2: A negotiable CD
a. is a registered instrument.
b. is a bank-issued time deposit.
c. pays discount interest
d. is a bank-issued transactions deposit.
Câu 3: A banker's acceptance is
a. a method to help importers evaluate the creditworthiness of exporters.
b. a liability of the importer and the importer's bank.
c. an add-on instrument.
d. for greater than one year maturity.
Câu 4: The most liquid of the money market securities are
a. T-bills
b. banker's acceptances
c. commercial paper.
d. repurchase agreements
Câu 5: You buy a $10,000 par Treasury bill at $9,575 and sell it 60 days later
for $9,675. What was your Effective Annual Return? a. 6.67%
b. 6.29%
c. 6.35%
d. 6.52%
6. Which of the following is NOT true
a. Forward contracts are traded on exchanges, but futures contracts are not.
b. Futures contracts nearly always last longer thar forward contracts
c. Futures contracts are traded on exchanges, but forward contracts are not.
d. Neither futures contracts nor forward contracts are traded on exchanges.
1. A U.S. investor has borrowed pounds, converted them to dollars, and invested
the dollars in the United States to take advantage of interest rate differentials.
To cover the currency risk, the investor should a. buy pounds forward.
b. A U.S. investor has borrowed pounds, converted them to dollars, and invested the
dollars in the United States to take advantage of interest rate differentials. To cover
the currency risk, the investor should c. buy dollars forward.
d. sell pounds spot.
2. If a firm has more foreign currency assets than liabilities, and no other
foreigncurrency transactions, it has
a. negative net exposure
b. positive net exposure
c. zero net exposure
d. a fully balanced position
3. A negotiated OTC agreement to exchange currencies at a fixed date in
thefuture but at an exchange rate specified today is a
a. currency swap agreement
b. currency futures contract
c. currency options contract
d. forward foreign exchange transaction
4. Which of the following conditions may lead to a decline in the value of
acountry’s currency?
I. Low interest rates
II. High inflation
III. Large current account deficit
a. I and II only
b. II only
c. II and III only
d. I only
5. Futures contracts have many advantages over forward contracts except that
….
a. futures trading preserves the anonymity of the participants
b. futures positions are easier to trade
c. futures contracts are tailored to the specific needs of the investor
d. counterparty credit risk is not a concern on futures
6. Which one of the following contracts requires no cash to change hands
wheninitiated?
a. listed call option
b. listed put option
c. long forward contract
d. short futures contract
7. Which of the following is a way of valuing interest rate swaps where LIBOR is
exchanged for a fixed rate of interest?
a. Assume that floating payments will equal forward OIS rates and discount net
cash flows at the swap rate
b. Assume that floating payments will equal forward LIBOR rates and discount
net cash flows at the swap rate
c. Assume that floating payments will equal forward OIS rates and discount net
cash flows at the risk-free rate
d. Assume that floating payments will equal forward LIBOR rates and discount
net cash flows at the risk-free rate
8. Which of the following is true for the party paying fixed in an interest
rateswap?
a. There is more credit risk when the yield curve is downward sloping than when
it is upward sloping
b. There is more credit risk when the yield curve is upward sloping than when it is
downward sloping
c. The credit exposure increases when interest rates decline
d. There is no credit exposure providing a financial institution is used as the
intermediary
9. If an asset price declines, the investor with a ….. is exposed to the
largestpotential loss.
a. long futures contract
b. short futures contract
c. long call option
d. short call option
1. Which of the following describes European options?
a. Priced in Euros c. Sold in Europe
b. Calls ( there are no puts) d. Exercisable only at maturity
2. Clearing houses are
a. Sometimes used in both futures markets and OTC markets
b. Used in OTC markets, but not in futures markets
 c. Always used in both futures market and OTC markets
d. Nerver used in futures markets and sometimes used in OTC markets
3. Which of the following is true about a long forward contract
a. The contract is worth zero if the price of the asset rises after the contract has
been entered into
b. The contract is worth zero if the price of the asset declines after the contract has
been entered into
c. The contract becomes more valuable as the price of the asset rises
d. The contract becomes more valuable as the price of the asset declines
4. Which of the following is NOT true
a. A put option gives the holder the right to sell an asset by a certain date for a
certain price
b. The holder of a forward contract is obligated to buy or sell an asset
c. The holder of a call or put option must exercise the right to sell or buy an asset
d. A cal option gives the holder the right to buy an asset by a certain date for a
certain price
5. The process of packaging and/or selling mortgages that are then used to
backpublicly traded debt securities is called
a. market capitalization
b. collateralization
c. securitization
d. mortgage globalization
6. Which of the following statements about mortgage markets is/are true?
I. Mortgage companies service more mortgages than they originate
II.Servicing fees typically range from 2 percent to 4 percent
III.Most mortgage sales are with recourse
IV.The govement is involved in the residential mortgage markets
a. II, III, and IV only c. I, III, and IV only
b. b. II and III only d. I and IV only
7. A______ placed against mortgaged propety ensures that the propety cannot
besold (except by the lender) until the mortgage is paid off
a. collateral c. down payment
b. lien d. writ of habeas corpus
8. The schedule showing how monthly mortgage payments are split into
pricipaland interest is called a(n)
a. private information is of no help in earning abnormally high returns.
b. amortization schedule
 c. balloon payment schedule
d. graduated payment schedule
9. Mortgage fees paid by the homeowner at, or prior to, closing upon
thepurchase of a house typically include all but which one of the following?
a. Application fee c. Prepaymant penalty
b. Appraisal fee d. Title search fee
10. The riskiest capital market security is
a. Treasury bond c. Preferred sotck
b. Common stock d. Corporate bond
11. Which of the following is not true with respect to preferred stock?
a. If the firm does not have sufficient earnings from which to pay the preferred
stock dividends, the preferred shareholders may force the firm into bankruptcy
b. Payment of preferred dividends is not a tax-deductible expense
c. Preferred stock usually does not allow for significant voting rights
d. Normally, the owners of preferred stock do not participate in the profits of the
firm beyond the stated fixed annual dividend.
12. Preferred shareholders
a. Typically participate in the profits of the firm beyond the stated fixed annual
dividend
b. Typically have the same voting rights as common shareholders
c. Do not share the ownership of the firm with common shareholders
d. May not receive a dividend every year
13. A firm will typically attempt to sell shares from a secondary offering
a. at the prevailing market price
b. at the offer price of the IPO
c. far above the prevailing market price
d. far beow the prevailing market price
14. Firms assume_____ risk when they issue preferred stock than when the
issuebonds. The payments of dividends on preferred stock______be omitted
without the firm being forced into bankruptcy
a. more, cannot c. less, can
b. more, can d. less, cannot