Question

5. True or False? So-called "Liberty Bonds," sold by the U.S. government to finance World War I, were the first financial security every purchased by many Americans.

6. True or False? According to the author, the protections in place in today's stock market are sufficient to override the human element.

7. True or False? LOR determined that throughout the buying and selling stock futures, it could replicate a put option for the portfolio insurance it wanted to offer investors.

8. True or False? Throughout the stock market crash in 1929, the activity on the new york stock exchange was orderly, with little difference from any normal trading day

Answer 1

5. True - Liberty bonds issued during world war 1 were one of the first bonds purchased by many Americans.

6. False - Though there are protections available in the stock market they cannot override the human element i.e. market sentiment, speculative trading etc. These can lead to lots of ups and downs and negate the effect of protection.

7. True. LOR did use the above mentioned strategy but this ultimately led to the black Monday due to the huge amount of speculation.

8. False The trading volume was high and there was high amount of speculation.