Finance 1-55

Front

Which of the following does the OCC not establish?
The expiration date, The number of shares in the contract, The exercise price, The premium

Back

The premium

Front

A bond's yield to maturity is all of the following except: The lowest return if the bond is a premium bond, The most important yield for the investor, The investor's total annualized return, The lowest return if the bond is a discount bond

Back

The lowest return if the bond is a discount bond

Front

Sales Co broker-dealer is acting as the principal underwriter for GTY mutual fund. Sales Co enters into a selling agreement with RKL broker-dealer that will allow RKL broker-dealer to:

Back

Purchase shares of GTY at a discount from POP and immediately resell them at the POP

Front

Which of the following is not a method of retiring bonds? Redemption, Refunding, Conversion, Term

Back

Term

Front

Before opening a new account for any customer, a registered representative must:

Back

Fill out a new account form.

Front

ABC subordinated convertible debentures are quoted at 110. They are convertible into XYZ common at $25 per share. The bonds have been called at 108 and the stock is quoted at $28. You should advise your client to:

Back

Convert the bonds

Front

A quote for a corporate bond from the GSC Company of 96.125 translates into:

Back

$961.25

Front

A 62-year-old woman dies leaving her IRA to her 50-year-old husband as beneficiary with her brother as conditional beneficiary. The 50-year-old husband doesn't need the money and wants to preserve the value of the IRA for his children. To accomplish this he should:

Back

Roll it into a new IRA in his name with his children as beneficiaries.

Front

Your existing customer has just been approved by your firm's ROP to trade options. How long do they have to return the signed options agreement?

Back

15 days

Front

Money market instruments are all of the following except: A method used to obtain short-term financing, Highly liquid fixed income securities, Issued by corporations with high credit ratings, thus considered safe, Considered risky because of the short-term maturities

Back

Considered risky because of the short-term maturities