Please Choose the correct answer below. No explanation is needed.

1. If you take a futures position in a stock index future to offset the risk of a market decline affecting your investment portfolio you are:

a. doing an arbitrage trade

b. doing a reverse rade

c. doing a close-out

d. creating a cross-hedge.

e. creating a "triple witch"

2. The standard contract size on US Treasury note futures contracts is:

a. $1000

b. $10,000

c. $100,000

d. $1 million

e. $10 million

3. The price at which an option will be exercised is called the:

a. Intrinsic value

b. strike price

c. money value

d. straddle price

e. market value

4. A call option gives its owner the _____ a security at the strike price within the option period.

a. obligation to buy

b. obligation to sell

c. right, but not the obligation to sell

d, right to borrow

e. right, but not the obligation to buy

5. A stock is currently selling for $36 a share and has a dividend yield of 4 percent. The risk free rate is 5.25 percent. What is the 3-month futures price on this stock ?

a. $36.13

b. $36.45

c. $36.29

d. $36.46

e. $36.11