Which one of the following is a difference between a forwardcontract and a futures contract?

a	Forward contracts are based on commodities while futurescontracts are based on financial instruments.
b	Futures contracts are managed through an organized exchangewhile forward contracts are not.
c	There are no differences between forward and futurescontracts.
d	A forward contract is a formal agreement while a futurescontract is an informal agreement.
e	The price of the asset exchanged is determined when a forwardcontract is entered while the price is set on the exchange date fora futures contract.

The Jones Sausage Company and Farmers’ Cooperative met today andagreed to exchange pork six months from now at a price which theynegotiated today. This agreement was made between the two firms anddid not pass through an organized exchange. Which one of thefollowing best describes this transaction?

a	forward contract
b	CME transaction
c	futures contract
d	cash market
e	spot market

What is the beta of a portfolio which consists of thefollowing?

Security	Amount Invested	Beta
A	$2,000	1.38
B	$5,000	0.47
C	$9,000	1.88
D	$4,000	1.08

a	1.18
b	1.22
c	1.23
d	1.32
e	1.37

The Sauguras Ironworks Company has bonds outstanding with a parvalue of $1,000 each and a 6.6 percent coupon. The bonds mature in7.5 years and pay interest semiannually. What is the current valueof each of these bonds if the yield to maturity is 6.8percent?

a

$988.40

b

$1,000.00

c

$1,005.88

d

$1,008.36

e

$1,009.47

At what price will a dealer sell the Jun$34 put on GeneralElectric stock?

	CA	LL	P	UT
Exp	Strike	Bid	Ask	Bid	Ask
Jun	32.50	0.68	0.70	0.70	0.73
Sep	32.50	1.60	1.62	1.64	1.68
Jun	34.00	0.18	0.19	1.73	1.77
Sep	34.00	0.93	0.95	2.52	2.56

a	$1.64
b	$1.73
c	$1.77
d	$2.52
e	$2.56