CFA历年考题以及相关资料 Quiz 16.doc

16: Asset Valuation: Derivative Investments1.A: IntroductionQuestion ID: 13922Hedgers in the futures market usually:A.only trade in futures market.B.only trade in cash market.C.trade in neither cash nor futures markets.D.trade in both cash and futures markets. DQuestion ID: 13920Any rational price for a financial instrument should:A.be low enough for most investors to afford.B.be always increasing.C.provide no opportunity for arbitrage.D.provide an opportunity for investors to make a profit. CQuestion ID: 24778Which of the following statements about options and their underlying assets is FALSE?A.The value of an option, in comparison to its underlying asset, has the potential of creating an arbitrage opportunity.B.The owner of the option is legally required to engage in a transaction involving the asset.C.The holder of a long position on an option is the only party with the right to initiate a transaction involving the asset.D.The seller of the option is legally required to engage in a transaction involving the asset.BThe option writer is required to honor the terms of the contract if called upon by the buyer to do so. The option buyer has the discretion to exercise the contract or not.Question ID: 24852Which of the following statements about forward and future contracts is FALSE?A.A future requires the contract purchaser to receive delivery of the good at a specified time.B.A predetermined price to be paid for a good is a necessary requirement in the terms of a forward contract.C.The future value of a financial derivative depends on the value of its underlying asset.D.The primary difference between forwards and futures is that only futures are considered financial derivatives. DForwards and futures are similar and serve similar needs. Both are considered types of financial derivatives in that payoffs depend on another financial instrument or asset. The primary difference is that forwards are designed for the needs of the particular parties entering the contract, where futures are standardized contracts.Question ID: 24775Which of the following relationships between arbitrage and efficient markets is least accurate?A.The concept of rationally priced financial instruments preventing arbitrage opportunities is the basis behind the no-arbitrage principle.B.Momentary deviations from market efficiency can create an arbitrage opportunity.C.Investors acting on arbitrage opportunities help keep markets efficient.D.Market efficiency refers to the low cost of trading derivatives because of the lower expense to traders.DMarket efficiency refers to the concept of all relevant information being reflected in an assets price, not the low cost of trading derivatives. One necessary criterion for efficient markets is instantaneous adjustment of market values. Arbitrage, by trading on a price difference between identical assets, causes an imbalance between demand and supply that instantaneously corrects the pricing difference. Question ID: 13963Which of the following is TRUE about the no-arbitrage principle?A.No arbitrage activity is allowed in the financial market.B.You have to pay some transaction fees for trading financial assets.C.You cannot make excess profit without taking any risk.D.No one can make a profit in a bear market. CQuestion ID: 24774Which of the following statements about arbitrage opportunities is TRUE?A.Engaging in arbitrage requires a large amount of capital for the investment.B.When an opportunity exists to profit from arbitrage, it usually lasts for several trading days.C.Pricing errors in securities are instantaneously corrected by the first arbitrageur to recognize them.D.There can never be an opportunity to make profits from arbitrage.CArbitrage is the opportunity to trade in identical assets that are momentarily selling for different prices. Arbitrageurs act quickly to make a riskless profit, causing the price discrepancy to be instantaneously corrected. No capital is required, because opposite trades are made simultaneously.Question ID: 13977Futures contracts differ from forward contracts in which of the following ways?A.Performance of each party in a futures transaction is guaranteed by a clearinghouse.B.All of these choices are correct.C.Futures contracts require a daily settling of any gains or loses.D.Futures contracts are standardized. BQuestion ID: 13980Which of the following statements accurately describes how futures contracts differ from forward contracts?A.Futures contracts are standardized.B.Futures contracts require a daily settling of gains and losses.C.All of these cho。