1. 		5
   		6
   		5.4
   		6.6

3.5 points

QUESTION 3

1. You bought Gamestop when it was trading for $50 and at the same time, wrote (sold) a call at a $100 strike price for $5. The stock rises to $200. What is the net value of your total position?

   		205
   		105
   		55
   		200

3.5 points

QUESTION 4

1. Gold is expensive to store and does not pay any interest or dividends. Because of that should the futures price be higher or lower than the spot price of gold?

   		Lower
   		Not enough information to determine
   		The Same
   		Higher

3.5 points

QUESTION 5

1. What is NOT a WEAKNESS using the Repricing Model for interest rate risk management?

   		It ignores floating rate assets.
   		It ignores off balance sheet cashflows.
   		It ignores market value effects.
   		It doesn't properly deal with rate insensitive assets and liabilities.