Question

Which one of the following are zero-coupon bonds?

I) Treasury bill

II) Treasury note

III) Treasury bond

IV) Commercial paper

V) Agency bonds

		I, V
		I, II, III
		I, IV, V
		II, III
		I, IV

You buy a call option on Citibank with the strike price of 100. Suppose the Citibank's stock price is 110 on the option expiration date. What is your payoff?

		0.
		10.
		20.
		-10.
		-20.

According the lectures, what one of the following signals can be used to predict a forthcoming recession?

I) Ted spread

II) Risk-free rate

III) Bid-ask spread

IV) Fed fund rate

V) Inverted yield curve

		I, II, III, IV, V
		I, III, V
		II, IV
		I, V
		III, IV, V

1. The money market is a subsector of the

   		capital market.
   		commodity market.
   		equity market.
   		derivatives market.
   		None of the options are correct.

________ financial asset(s).

		Derivatives are
		Land is a
		Derivatives and U.S. agency bonds are
		Buildings are
		U.S. agency bonds are

Answer 1

Ans.1)

Which one of the following are zero-coupon bonds?

I, II, III :i.e. I) Treasury bill , II) Treasury note and III) Treasury bond

Ans.2)

You buy a call option on Citibank with the strike price of 100. Suppose the Citibank's stock price is 110 on the option expiration date. What is your payoff?

II) 10

Ans.3)

According the lectures, what one of the following signals can be used to predict a forthcoming recession?

III, IV, V : i.e. III) Bid-ask spread, IV) Fed fund rate and V) Inverted yield curve

Ans.4)

The money market is a subsector of the

None of the options are correct.

Money market is a subsector of te debt market.

Ans.5)

U.S. agency bonds are financial asset(s).