FI 120 Mid-Term Exam - Answer Key 1. The purchase of a futures contract gives the buyer _________. A. the right to buy an item at a specified price B. the right to sell an item at a specified price C.the obligation to buy an item at a specified price D. the obligation to sell an item at a specified price Bodie - Chapter 02 #49 Difficulty: Easy 2. An investor's degree of risk aversion will determine his or her ______. Bodie - Chapter 06 #7 Difficulty: Medium 3. You sold short 300 shares of common stock at $30 per share. The initial margin is 50%. You must put up _________. Investment = 300(30)(.50) = 4500 Bodie - Chapter 03 #53 Difficulty: Medium
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