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HW Help needed please


  • You plan to sell short 300 shares of stock at $10 per share. The

initial margin percentage is 60%. What is the initial value of your equity?

a) 3000 b) 1800 c) 4800 d) 1200


  •  A _____ option gives you the right to buy stock for a specified price on or before a specified date.

a) put b) real c) script d) call  


 Which of the following do not take place in the secondary market?

a) transactions on AMEX b) transactions on Nasdaq c) transactions on the NYSE d) transactions on new issues of stock e) overnight trading


  • You own shares of the Illuminati Company. The current price is $80 a share. You want to limit your potential losses if the stock falls so you tell your broker to sell out your shares if the price drops to $70 a share. 

The type of order you would place is:

a) a stop buy b) a stop sell c) a limit buy d) a limit sell


  • The price the owner of a call option must pay in order to purchase the stock is called the ___.

a. purchase price b. exercise price c. break-even price d. none of the above


  • An important trend that has changed the contemporary investment market is __________.

a. financial engineering b. globalization c. securitization d. all of the above

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