ACFI 704 - Homework for Chapters 1+2
Name: _
Chapter 1
1. List three types of traders in futures, forward, and options markets
i.
_
ii.
_
iii.
_
2. Which of the following is not true (circle one)
a. When a CBOE call option on IBM is exercised, IBM issues

ACFI 704 - Homework for Chapters 3+4
Name: _
Chapter 3
1. The basis is defined as spot minus futures. For a short hedger basis strengthens unexpectedly.
Which of the following is true (circle one)
(a)
(b)
(c)
(d)
The hedgers position improves.
The hedgers

ACFI 704 - Homework for Chapters 14+15
Name: _
Chapter 14
1. Which of the following is true about employee stock options (ESOPS) and regular
American exchange-traded call options (EXOPS). (Circle three)
(a) ESOPS usually cannot be exercised at all times w

The University of New Hampshire
Peter T. Paul College of Business & Economics
ACFI 704 Derivative Securities and Markets Syllabus Spring 2016
Section 01 (50704): MW 8:10 AM 9:30 PM, 165 Paul College, 40 Seat Max
Instructor: Kevin McLaughlin (Pronounced mi

The University of New Hampshire
Paul College of Business & Economics
ACFI 704 Derivative Securities and Markets Syllabus Spring 2013
Section 01 (50823): MW 12:40 PM 2:00 PM, 212 McConnell, 165 Paul College, 60 Seat Max
Instructor: Kevin McLaughlin (Pronou

ACFI 704 Book Examples for Chapters 21+23
Chapter 21
Practice Questions Problem 21.9 F0 = 104.475, d1 = 1.1144, d2 = 1.0744, call = $3.19
(Note: Like the prior exam, I will not ask you to solve for N(d1) and
N(d2).)
Practice Questions Problem 21.10 price

ACFI 704 - Homework for Chapters 21+23
_
Name:
Chapter 21
1. A 10-year interest rate cap has a cap rate of 4%, quarterly resets, and a notional principal
of $1 million
(i) How many caplets are there underlying the cap?
_
(ii) Suppose the three-month inter

Chapter 9
Call-buy, put-sell
European-end, American-whenever
Long-bought option, put-sold or written
option
Long calltrader believes price will increase
the right to buy, S>K by more than
premium-profit
S<K contract worthless, losese premium
Long puttrade