New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
fraud examination
SIE Exam: 1001 Practice Questions For Dummies 1st Edition Steven M. Rice (Author) - Solutions
An investor would face an unlimited maximum loss potential if I. writing 3 XYZ Dec 25 puts II. shorting 200 shares of XYZ III. writing 4 XYZ Dec 30 naked calls IV. writing 2 XYZ Dec 30 covered calls(A) I and II(B) I and III(C) II and III(D) II and IV
John Smith purchased 5 HIJ Oct 50 calls at 3.25 each. At expiration, the calls are not in the money, and they expire unexercised.How much did John lose as a result?(A) $325(B) $1,625(C) $2,500(D) $5,325
The breakeven point on a call option is(A) the stock price plus the premium(B) the stock price minus the premium(C) the exercise price plus the premium(D) the exercise price minus the premium
Which TWO of the following options are TRUE of an investor who writes a call option?I. The maximum potential gain is the premium.II. The maximum potential loss is the premium.III. The break-even point is the premium added to the strike price.IV. The break-even point is the premium subtracted from
The holder of a call option(A) may generate income from the premium paid for the option(B) has a position that will help him limit losses on stock owned(C) may purchase stock at a predetermined price(D) will profit if the price of the underlying stock declines
An investor owns an option that has no intrinsic value at expiration. Which of the following is the investor most likely to do?(A) Exercise the option.(B) Let the option expire.(C) Sell the option.(D) Wait for automatic exercise.
A LMN Dec 45 put is trading for 3.5 when LMN is at $47.50. What is the time value of this option?(A) 0(B) 1(C) 2.5(D) 3.5
A QRS Dec 50 call is trading for 9 when QRS is at $55. What is the time value of this option?(A) 0(B) 4(C) 5(D) 9
An investor has purchased a put option.At what point will the option have intrinsic value?(A) When the underlying stock is below the exercise price(B) When the underlying stock is above the exercise price(C) When the underlying stock is below the exercise price less the premium paid(D) When the
What is the intrinsic value of an ABC 50 call option with a premium of 4 when the current market value is 40?(A) –$6(B) –$10(C) $0(D) $6
An October 40 call option is two days away from expiration. The current market value of the underlying stock is 52.What is the most likely premium?(A) .754(B) 2(C) 12.25(D) 16
Which of the following would affect the premium of an option?I. Volatility of the underlying security II. The amount of time until the option expires III. The intrinsic value(A) I and II(B) II and III(C) I and III(D) I, II, and III
A put option never goes in the money and expires unexercised. Which two of the following are true regarding that option?I. The seller loses the premium paid.II. The seller keeps the premium received.III. The buyer loses the premium paid.IV. The buyer keeps the premium paid.(A) I and III(B) I and
An investor is short 1 XYZ Oct 50 call at 3.Which of the following is true of this investor?(A) The investor can exercise the option to purchase XYZ at $50 per share.(B) The investor has received $300 for the call contract.(C) The investor has the right to purchase 300 shares of stock under the
Which option is out-of-the-money if LMN is at $60?(A) LMN May 65 put(B) LMN Aug 45 call(C) LMN Nov 80 call(D) LMN Dec 70 put
Which option is out-of-the-money if ABC is at $40?(A) ABC May 45 put(B) ABC May 35 call(C) ABC May 50 call(D) ABC May 55 put
An investor is long 1 GHI Oct 30 call. If GHI has a current market value of 33, which of the following is TRUE?(A) The option is out-of-the-money.(B) The option is at-the-money.(C) The option is in-the-money.(D) The call has a negative intrinsic value.
Which of the following would provide protection for an investor who is short ABC common stock?(A) Short an ABC call option(B) Short an ABC put option(C) Long an ABC call option(D) Long an ABC put option
Sellers of LMN put options(A) have the right to buy 100 shares of LMN stock at a fixed price(B) have the right to sell 100 shares of LMN stock at a fixed price(C) have the obligation to sell 100 shares of LMN stock at a fixed price if exercised(D) have the obligation to buy 100 shares of LMN stock
Which of the following are true regarding the seller of a covered call?I. Unlimited profit potential II. Limited profit potential III. Unlimited loss potential IV. Limited loss potential(A) I and III(B) I and IV(C) II and III(D) II and IV
A customer purchased an option for a premium of 3.5. This relates to a purchase price of(A) $3.50(B) $35.00(C) $350.00(D) $3,500.00
If an SPX index call option is exercised, which of the following is true?(A) The writer must deliver the underlying index.(B) The writer must deliver cash equal to the in-the-money amount.(C) The writer must purchase the underlying index.(D) Any of the above.
If an investor wants to write a call option, all of the following positions would cover this investor EXCEPT(A) owning put options on the same stock with a higher strike price(B) owning call options on the same stock with a lower strike price(C) having an escrow receipt for the same stock(D) owning
Buyers of DEF call options(A) have the right to buy 100 shares of DEF stock at a fixed price(B) have the right to sell 100 shares of DEF stock at a fixed price(C) have the obligation to buy 100 shares of DEF stock at a fixed price if exercised(D) have the obligation to sell 100 shares of DEF stock
Which of the following option contracts are in-the-money when UPP is trading at 43.50?I. Short UPP 35 call II. Short UPP 40 put III. Long UPP 40 call IV. Long UPP 50 put(A) I, III, and IV(B) II and IV(C) III and IV(D) I, II, and III
An investor who writes a put has the(A) right to buy stock at a fixed price(B) right to sell stock at a fixed price(C) obligation to buy stock at a fixed price if exercised(D) obligation to sell stock at a fixed price if exercised
One of your clients is convinced that DWN common stock will decline in value over the next few months. Which investment strategy would you recommend to your client that would allow him to take advantage of the expected decline with the smallest cash investment?(A) Buying a DWN call option(B) Buying
An investor who sells an ABC call option with no other positions on the underlying security I. is bearish on ABC stock II. is bullish on ABC stock III. has the obligation to sell stock if the option is exercised IV. has the obligation to buy stock if the option is exercised(A) I and III(B) I and
The breakeven point is a price at which(A) the buyer would have a profit if the option was exercised(B) the seller would have a profit if the option was exercised(C) both the buyer and seller would have a profit if the option is exercised(D) neither the buyer nor seller would have a profit if the
The buyer of a call option has the(A) right to buy stock at a fixed price(B) right to sell stock at a fixed price(C) obligation to buy stock at a fixed price(D) obligation to sell stock at a fixed price
Bearish option positions are(A) writers of puts and writers of calls(B) buyers of puts and buyers of calls(C) writers of puts and buyers of calls(D) buyers of puts and writers of calls
An investor owns 100 shares of DIM common stock. Which of the following would provide this investor a full hedge for this position?(A) Long a DIM call(B) Long a DIM put(C) Short a DIM call(D) Short a DIM put
If holding which of the following positions would an investor deliver the stock if exercised?(A) Long a call or short a call(B) Long a call or short a put(C) Long a put or short a call(D) Long a put or short a put
Bullish option strategies include I. buying calls II. buying puts III. writing in-the-money calls IV. writing in-the-money puts(A) I and III(B) I and IV(C) II and III(D) II and IV
Standard option contracts are issued with an expiration of(A) 6 months(B) 9 months(C) 12 months(D) 39 months
An ABC call option premium increased by .65. What is the dollar amount of the increase?(A) $0.65(B) $6.50(C) $65(D) $650
Unless otherwise stated, a stock option contract represents(A) 1 share of the underlying security(B) 10 shares of the underlying security(C) 100 shares of the underlying security(D) 1,000 shares of the underlying security
Equity REITs generate their income from(A) rental income and mortgage interest(B) rental income and capital gains from properties sold(C) mortgage interest and capital gains from properties sold(D) rental income, mortgage interest, and capital gains from properties sold
A PNLR is a(A) registered non-listed REITS(B) listed REIT(C) private REIT(D) none of the above
Which of the following REITs are exempt from SEC registration?(A) Registered non-listed REITSs(B) Listed REITs(C) Private REITs(D) None of the above
Which of the following is true of hybrid REITs?(A) They may generate income from rent.(B) They may generate income from capital gains.(C) They may generate income from mortgage interest.(D) All of the above.
All of the following securities are exempt from SEC registration EXCEPT(A) TIPS(B) General obligation bonds(C) Special assessment bonds(D) Publicly traded REITs
Which of the following is NOT TRUE of real estate investment trusts (REITs)?(A) They are registered as investment companies under the Investment Company Act of 1940.(B) Unlike DPPs they can only pass through gains and not losses.(C) There is very limited trading of REITs in the secondary market.(D)
Proof of financial status for investors is required for all of the following EXCEPT(A) equipment leasing programs(B) real estate investment trusts(C) oil and gas exploratory programs(D) oil and gas income programs
REITs are organized as(A) corporations(B) partnerships(C) mutual funds(D) trusts
A REIT must distribute at least __________ of its income to shareholders to avoid being taxed as a corporation.(A) 25%(B) 75%(C) 90%(D) 95%
All of the following are types of REITs EXCEPT(A) equity(B) mortgage(C) double-barreled(D) hybrid
Which of the following real-estate investment trusts have income that at least partially is derived from rent collected?I. Equity REITs II. Mortgage REITs III. Hybrid REITs(A) I and III(B) II and III(C) I and II(D) I, II, and III
Tito Rousey wants a diversified oil and gas investment portfolio. Which of the following oil and gas partnerships offers the MOST diversification?(A) An exploratory program(B) An income program(C) A combination program(D) A developmental program
One of your risk-averse clients is interested in investing in an oil and gas limited partnership. Which of the following types of partnerships should you recommend?(A) A wildcatting program(B) A developmental program(C) An income program(D) A combination program
Frack-for-Life Oil and Gas partnership drills only in proven areas. This is considered a(n)(A) exploratory program(B) developmental program(C) income program(D) combination program
Depletion deductions may be claimed for(A) equipment leasing programs(B) raw land real-estate programs(C) exploratory oil and gas programs(D) income oil and gas programs
John Wegner is a limited partner in a real estate DPP that invests in public housing.John receives passive income that exceeds the passive deductions by a significant amount and would like to shelter more of their passive income. Which of the following recommendations would be appropriate for
Rank the following oil and gas limited partnerships from safest to riskiest.I. Income II. Developmental III. Exploratory(A) I, II, III(B) II, I, III(C) III, I, II(D) III, II, I
General partners of real estate DPPs have I. limited liability II. unlimited liability III. an active role in the partnership IV. a passive role in the partnership(A) I and III(B) I and IV(C) II and III(D) II and IV
Which of the following partnerships could claim depletion deductions?I. Real estate II. Oil and gas III. Equipment leasing(A) I only(B) II only(C) I and III(D) II and III
Oil and gas program depletion deductions are based on the amount of oil(A) stored(B) extracted(C) lost(D) sold
Which of the following types of partnerships has the highest IDCs?(A) Exploratory(B) Raw land(C) Existing property(D) Income
Real estate limited partnerships that receive tax credits I. have income from historic rehabilitation II. have income from raw land III. have income from government assisted housing IV. have income from all income producing properties(A) I only(B) I and III(C) II and IV(D) I, III, and IV
Which of the following is NOT a benefit of investing in a long-term equipment leasing program?(A) A steady stream of income(B) Depreciation deductions(C) Capital appreciation potential(D) Operating expenses to help offset revenues
Tangible drilling costs associated with oil and gas DPPs(A) can be depreciated yearly and have no salvage value at the end of the program(B) can be depreciated yearly but have salvage value at the end of the program(C) cannot be depreciated yearly and have no salvage value at the end of the
Which of the following securities is least liquid?(A) Limited partnerships(B) Municipal bonds(C) Corporate bond funds(D) ADRs
Which of the following oil and gas partnerships drills in unproven areas only?(A) Exploratory(B) Developmental(C) Income(D) Combination
Partners in an equipment leasing program would be allowed to make all of the following deductions EXCEPT(A) Depreciation(B) Depletion(C) Interest expenses(D) General operating expenses
Which of the following are intangible drilling costs relating to an oil and gas DPP?(A) Wages(B) Fuel(C) Insurance(D) All of the above
All of the following are types for real estate DPPs (direct participation programs)EXCEPT(A) income(B) existing properties(C) new construction(D) raw land
An investor in an undeveloped land limited partnership is mostly concerned with(A) depletion(B) depreciation(C) appreciation(D) cash flow
Mary Gold is interested in investing$25,000 in a real estate limited partnership.Mary’s main investment objective is capital growth potential. If all of the rest of Mary’s money is tied up in non-liquid investments, which of the following types of partnerships should you recommend?(A) Raw
Which of the following IS NOT a type of direct participation program?(A) REIT(B) Real estate(C) Equipment leasing(D) Oil and gas
Which of the following deductions is allowed for oil and gas DPPs but not real estate DPPs?(A) Depreciation deductions(B) Depletion deductions(C) Both (A) and (B)(D) Neither (A) nor (B)
Which of the following is true regarding tax consequence of a limited partnership?(A) Tax liability flows through to limited partners.(B) Tax liability flows through to general partners.(C) All tax liabilities are paid by the limited partnership.(D) Both (A) and (B).
All of the following are advantages of investing in a real estate limited partnership EXCEPT(A) appreciation potential(B) depreciation deductions(C) depletion deductions(D) cash flow
Losses from a real estate direct participation program can be used to offset which of the following?I. Income from an oil and gas partnership II. Earned income III. Portfolio income IV. Capital gains from a REIT(A) I only(B) IV only(C) II and III(D) I, II, III, and IV
A limited partner’s cost basis in a real estate program could be increased by all of the following EXCEPT(A) cash contributions(B) cash distributions(C) non-recourse debt(D) property contributions
Which of the following does NOT describe the tax status of a limited partnership?(A) Any gains generated are taxed as capital gains.(B) Any income generated is taxed as ordinary income.(C) The partnership is fully taxed by the IRS.(D) The tax liability flows through to the limited and general
Which of the following paperwork is not required for a limited partnership?(A) Agreement of limited partnership(B) Bylaws(C) Subscription agreement(D) Certificate of limited partnership
Which of the following investments does NOT require written verification of an investor’s financial status?(A) Oil and gas partnerships(B) Real estate limited partnerships(C) Equipment leasing partnerships(D) Real estate investment trusts
Which of the following investments would require written proof of the client’s net worth?(A) A variable annuity contract(B) An aggressive growth fund(C) A face amount certificate company(D) An oil and gas limited partnership
Which of the following documents must a general partner sign to accept a new limited partner?(A) A prospectus(B) A certificate of limited partnership(C) An agreement of limited partnership(D) A subscription agreement
Which of the following partnership documents needs to be filed with the SEC prior to making a public offering?(A) Certificate of limited partnership(B) Agreement of limited partnership(C) Subscription agreement(D) All of the above
Which of the following partnership documents includes the rights and responsibilities of the general and limited partners?(A) Certificate of limited partnership(B) Subscription agreement(C) Partnership agreement(D) Both (A) and (C)
Which of the following documents are required by a limited partnership?I. Subscription agreement II. Certificate of limited partnership III. Registration form IV. Partnership agreement(A) I, II, and III(B) II, III, and IV(C) I, II, and IV(D) I, II, III, and IV
Limited partners may I. compete with the partnership II. inspect the partnership books III. vote to terminate the partnership IV. make management decisions for the partnership(A) I, II, and III(B) I, III, and IV(C) II, III, and IV(D) I, II, and IV
Out of the choices listed, which of the following is the biggest disadvantage of investing in DPPs?(A) Flow through of gains and losses.(B) Lack of liquidity.(C) Capital appreciation.(D) You’re limited to investing in only a few different types of oil and gas programs.
The general partner of an oil and gas developmental program is responsible for all of the following EXCEPT(A) paying the partnership’s expenses(B) managing the partnership(C) providing a bulk of the capital for the partnership(D) accepting new limited partners
Which of the following is true of real estate DPPs?I. Capital growth will come from rent received from the properties owned.II. Capital growth will come from appreciation of the properties owned.III. Income will come from rent received from the properties owned.IV. Income will come from
An oil and gas DPP’s tangible assets I. will have salvage value at the dissolution of the partnership II. will have no salvage value at the dissolution of the partnership III. may be depreciated on an accelerated basis IV. may be depreciated on a straight-line basis(A) I and IV(B) II and III(C)
When a limited partnership is being dissolved, which of the following is the last to be paid?(A) Secured creditors(B) General partners(C) General creditors(D) Limited partners
Which of the following partnerships are limited partners allowed to claim nonrecourse debt as a tax deduction?(A) Equipment leasing(B) Oil and gas wildcatting(C) Oil and gas developmental(D) Real estate
Who assumes the most risk in an oil and gas limited partnership?(A) Limited partners assume more risk.(B) General partners assume more risk.(C) Limited partners and general partners assume an equal amount of risk.(D) It depends on how the partnership is set up.
Which of the following would be associated with a limited partnership?I. Pass through of gains and losses.II. Certain programs may receive government tax credits.III. Free transferability of limited partner interest.IV. The limited partners are responsible for reporting gains and losses to the
Which of the following is not an advantage of being a limited partner in a DPP?(A) Pass through of income and losses(B) Pass through of capital gains(C) The ability to participate in management decisions(D) Professional management
Which of the following is a benefit of investing in a direct participation program (DPP)?(A) Professional management(B) Pass-through of income and losses(C) Limited liability(D) All of the above
Limited partnerships must have at least(A) one limited partner(B) one general partner(C) any combination of more than 10 limited and general partners(D) both (A) and (B)
A general partner has(A) an active role and unlimited liability(B) an active role and limited liability(C) an inactive role and unlimited liability(D) an inactive role and limited liability
A decision to dissolve a limited partnership prior to the scheduled dissolution date requires(A) a majority vote by the limited partners only(B) a majority vote by the general partners only(C) a majority vote by both the limited and general partners(D) a majority vote by all shareholders
Which of the following would be considered conflicts of interest for a general partner?I. Borrowing money from the partnership II. Providing a loan to the partnership at a lower rate than available at a bank III. Managing a partnership that is direct competition with another one that he manages IV.
Place in order from first to last how the remaining assets are distributed upon the dissolution of a limited partnership.I. Limited partners II. Secured creditors III. General partners IV. General creditors(A) IV, II, I, III(B) I, II, IV, III(C) II, IV, I, III(D) I, III, II, IV
Which of the following is true of limited partnerships?(A) They have perpetual life.(B) They must end on a predetermined date.(C) They may end by vote.(D) They must end on a predetermined date or end by vote.
Which of the following are fiduciarily responsible regarding a limited partnership?(A) General partners(B) Limited partners(C) Both (A) and (B)(D) Neither (A) nor (B)
Showing 4800 - 4900
of 8740
First
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
Last
Step by Step Answers
Get 50% OFF
Claim Now
