Which of the following describes a long position in an option? A: A position where there is more than one year to maturity B: A position where there is more than five years to maturity C: A position where an option has been purchased D: A position that has been held for a long time

According to the maturity time of the securities, financial markets can be divided into: A: Debt market and equity market B: Money and capital market C: Primary market and secondary market D: Spot market and forward market

If you have a bond that pays a lump sum at the time of maturity, it is A: called a zero-coupon bond. B: worth more than a bond with coupon payments. C: riskier than a bond with coupon payments. D: a safer investment than a perpetuity.

The maturity of the body is a good measure of adulthood.

Bootstrapping<br/>involves( ) A: Calculating the<br/>yield on a bond B: Working from<br/>short maturity instruments to longer maturity instruments determining<br/>zero rates at each step C: Working from long<br/>maturity instruments to shorter maturity instruments determining zero<br/>rates at each step D: The calculation<br/>of par yields

The return on a bond is equal to the yield to maturity when _________

Which of the following risk-free, zero-coupon bonds could be bought for the lowest price? A: one with a face value of $1,000, a YTM of 4.8%, and 5 years to maturity B: one with a face value of $1,000, a YTM of 3.2%, and 8 years to maturity C: one with a face value of $1,000, a YTM of 6.8%, and 10 years to maturity D: one with a face value of $1,000, a YTM of 5.9%, and 20 years to maturity

Which of the following is NOT true ( ) A: When a CBOE call<br/>option on IBM is exercised, IBM issues more stock B: An American<br/>option can be exercised at any time during its life C: An call option<br/>will always be exercised at maturity if the underlying asset price is<br/>greater than the strike price D: A put option will<br/>always be exercised at maturity if the strike price is greater than<br/>the underlying asset price.

A frequently used approximation for the yield to maturity on a long-term bond is the _________

The yield to maturity for a one - year discount bond equals _________