Question

Q1. An investor holding a short position in a maturing futures contract may: A. have to deliver the underlying asset to the holder of the long position. B. exercise the option to sell the asset to the holder of the long position C. take delivery of the underlying asset from the holder of the long position.

Q2. The discount rate that equates the present value of a bond's future cash flows lo its market price represents the bond's: A. yield curve. B. current yield C. yield to maturity

Q3. Which of the following types of funds sells shares to the public in an initial public offering? A. Closed-end funds B. Exchange-traded funds C. Open-end mutual funds

Q4. Alpha is best measured by which of the following? A. Market risk B. A factor model C. Peer-group benchmarks

Q5. Microeconomics includes the study of factors that: A. influence the supply of a product. B. affect the level of national income. C. determine the general price level of the economy

Answer 1

Answer:

Option number C... take delivery of the underlying asset from the holder of the long position.