Quiz5 (1) - MGT 3062 FINANCIAL MANAGEMENT SPRING 2011 QUIZ...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: MGT 3062 FINANCIAL MANAGEMENT SPRING 2011 QUIZ 5 raj Student: J (hows!) the BESl‘answer to each questton. Bubble at your answer on the form prowdea’. lfyoufeel the answer is notpravtded, show your work. explain your asst/Humans, and 11vrtteyour answer on the exam. Remove all hats and dark glasses. lfyou have to go to the restroom, go now No electromc a'c'vtc‘es allowed. You may hot use mur cellphone as a calculator. You may not stare text onyour calculator. As a (our/83y to your classmates, no questions are allowed after the Imtral INSN'HCI‘IOHS (If? given Ethtcs Challenge .‘ / certtfy by my stgnature that l have abided by the Georgta Tech Honor Code in preparmgfttr and takmg this exam and [further certzfv that / usea’ no aleummc dewcesfor trflormatton storage, removal. or commutttcattorzs. / understand that I my professor will work tirelessly to expel mefrom Oeat‘gta Tech 1f 1' amfouna' m walatton of the honor code 5' I gnature ' OPTIONS .rlhswer the jollmvtng questions using the .1lcUona/dfs' Corp. options cham that is attached to the back oft/71's quiz. .'\7ot1(;e that the questions (ls/{for not profit or loss. There are no negative answer choices. vozt calculate a loss. pick the answer that reflects that loss, For example tffitour calculation result is 4189, the correct answer is a loss of 0.89 so pic/t the 0.89 answer. Also assume that-1:011 pay or take the pricesgtven ana’ assume trtmsactzorts C‘c’)5‘t‘.5' and time value ofmonay (carrying) costs are negligible. 1. How much doc March 2011 $70.00 call cost on a per share basis? A. $8.15. Bkv$830 ’ 2./Howma{1y shares do you control in a standard option contract? </ A 100 l B. 1 C. 1000 D. It varies by contract E. 25 a/' lfyou buy (hold) a March 2011 $80.00 call today and the market (spot) price rises to $90 :11 expiration what is your not profit or loss per share? ,/ A.$111,110 8.35857 @3851) 13.11143 12.51147 5/; /0 —~ [V 7 \W" ta «1. If you buy a March 2011 $80.00 (2:111 today and the market (spot) price falls to $70 at expiratiotl. what is your 11131 profit or loss per share? AS1000 B. 38.57 C, 1311.43 ¢- #47 Wt 'JI 11’yo11 buy a March 2011 $80.00 put today and the market (spot) price 01115 to $70 at expiration. what is your net profit or loss per share? 151610.00 B. 35.65 (9:35 D1433 E19145 [U .... (fig/6' ‘ .{v \, / ,y/ 6. If you buy a March 2011 $80.00 p111 today and the market (spot) price rises to $90 :11 €Xp1mtion. what is your not profit or loss per share? A.Sl<‘),00 13535.65. 0115.55 1134.35 , (fig/‘5’ f/#;——/0 7. if you write a March 2011 $8000 call today and the market (spot) price rises to $90 at expiration, what is your net profit or tome? A $10.00 C. 38.53 D. $1.43 B. $1.47 ,g/Wa 8. It‘you write a March 2011 $80.00 put today and the market (spot) price rises to $90 at expiration, what is your net profit or loss per share? /"/im “" ‘ " g 3’35“ A.$1(l.00 335.65 C. $5.55 D.$4.35 13354.45 .p Q . {-sr~"“7' .. .‘25 ,¢ 9. You, want to lock in your trading profits, so you want to know if it is cost effective to create a collar around the current spot price. How much does it cost (or profit) on a per share basis to create a collar with strike prices of $70 and $80. / A. $3.95 B. $3.70 C. $2.88 D. $0 63 10. What does it cost to set up an $80 straddle? ’1" A. $2.44 B. $5.78 C, $5.88 D. $5.82 l l. A $20 put option on Wildwood stock expires today. The current price of the following best describes this option? ‘ W ' j ' A. funded B. unfunded C. at—the-money CD. it — he-money ‘. out—of-the-money 12. An optioyflifi’m has mo components the intrinsic value and the i ,,,,, W value A. SpoWQ‘Disemt Who E. Market 13. The last (lay on which an option can be exercised is the date. A. ex-paymeiit B. ex—option C. opening T31 tron . intrinsic fl ll. A call option 15 the 77M an asset at a fixed price during a stated period of time. Am ht to sell ( B. ri 11 to buy “ -. obligation to sell D. obligation to buy E. obligation to trade 15, The fixed price in an option contract at which the holder can buy or sell the underlying asset is called the option's: A. opening piice. B. intrinsic value. price. . market price. E. time value. Gags—7 6195/4/qu ROLES OF THE CFO m. Attendance question: What type 0 ( 1 did r, Elder give when you asde a question"? A. Snickers B. lolly Ranche C. Re ’5 Cups D. Hershey *5 Bar B M&Ms 17- Which of the following is not one of the “roles” that Mr. Elder says that he plays: A. Head Coach 8. Cheerleader Wécacker D. Quarterback Referee /’ [8 Mr. Elder is the CFO oLSouthem Linc. Southern Line in what industry? W """""""""""""""""" 'W;"T?W76Tfiéfifim(i3ffijgfiefiififim5fi§w l9. Mr. Elder showed a graph that his firm uses for risk analysis. The graph had two axis and several dots with tails, The position of a dot gave certain information about a particular risk and tails showed how the perceived risk had changed since the last report. For example. one dot represented data security. What, were the axis on thi_§ graph"? (@kelihood and cost B. Risk and reward C . Beta and standard deviation __H D. Cost of capital and WACC E. Person responsible for risk and cost 20- Compliance issues pertaining to Sarbaines-Oxley are handles by A. The internal auditing staff 8. CFO and CEO The company‘s attorney Cifl large cross-disciple team E. The C F0 only. Quotés for MCI) - Yzflloof Finance hupzf'lfinzmcc.yahoo.00:1qufos'kzk/ICDLQIHLZO117034I8 Yahoo! Mar: New Usey? Regsster Signln Heip finwmu ).,~«.,v,-va.mnwm,.-.,.,..,,WM.‘ - « Efiaflofli Fa NM 6 g { Web Search Dew 1‘ 3.35% Nasdaq 1‘ a HOME INVESTING NEWS 8- OPINION PERSONAL FINANCE MY PORTFOLIOS TECH TICKER “500:”, W": . . 1 GET QUOTES Finance Search Mm De: 13. 2010' ’2:56AM ES” v U S Marxets open m 8 hrs 34 mms McDonald's Corp. (MCD) On Dec 10' 77.56 {'e (2.95 12:16.1}? Options V‘ew Mar11§.m‘1fja‘x Options Expwmg Fnday, March 18. Zflfiw‘ N L Cans Symbd Last Change Bid Ask Voiume fife” 41.34 0,00 39,83 42 30 1O 0 NIA (2.00 35 150 39 85 O O 35,50 0,00 33 00 37,35 1 0 WA 0.00 30 5C 34 85 G 0 2320 0.00 32 30 “u 10 28785 0.60 ’29 90 1 (I 23.20 0.00 22 70 1O 10 1300 0.00 1? 60 17 80 5 2/ 17,10 0.00 1520 15 1O 68 14,70 [LOB ‘2 82‘ ‘2 9-2 1 89 10.50 11) 5’ 2 772 8.20 5 '50 L1 ~81 6‘05 6 ‘5 8 1 536 4,15 4 20 ‘00 3 ME 142 1:1, 7-14 I’M“? a 34 0 35 14: 3 * <4 0.08 o 38 1:3 2a, 1112 0.00 NA 3 06 6‘ 301 bxn'x Med '30? arts are zw're-naney {DJr'mcy an USO "1“2"1‘0R'ahrfavfifi";hvr ,flfi—QVJ w ore abou', Tanns's use *4 Person! Info: ‘5 3'9 ‘51“mt v mum-w z 3wm®cs 3' ad ccessz-g rne Vahaol sue ' cm wow eye’: a! an; 0’ rag-re , lh:[’£"‘9 mhm‘zl’nr ‘0: d irernsr ~, ’ ' ,mematlsnzv [email protected]! 3531 Gala 32%; updates ‘uw: sumn’: an iwd val“. cam: a v ucdalsg growled 7y ’ v v y y; 1213 m:2:57;\,\1 ...
View Full Document

This note was uploaded on 02/09/2012 for the course MGT 3078 taught by Professor Marchman during the Spring '12 term at Georgia Institute of Technology.

Page1 / 4

Quiz5 (1) - MGT 3062 FINANCIAL MANAGEMENT SPRING 2011 QUIZ...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online