Online Access Free CSC1 Practice Test

What is one key feature of futures?

• A.Can trade on an exchange or over-the-counter market.
• B.Parties are unable to offset the contract prior to expiration.
• C.The buyer must pay theseller a feewhen the contract is entered Into.
• D.Both parties to me contract must participate in The future Trade.

Which statutory right allowsa purchaser to caned their order if a prospectus has a misrepresentation?

• A.Right of rescission.
• B.Right of action for damages
• C.Right of amended prospectus delivery
• D.Right of withdrawal.

An investor sold short 1,500 MNO common shares at $12.75 pershare. What is the outcome if the investorcovers the short position at $10.15 per share?

• A.A loss of $2,382
• B.A loss of $3,000
• C.A profit of $3,900
• D.A profit of $2,382

What is unique to a shortmargin position?

• A.Margin is discretional for securities with certain price ranges.
• B.Margin is established when the dealer memberloansmoney to the client.
• C.There is a timelimit that a short position may be maintained.
• D.Short seller can suffer unlimited loss if the price of the security rises rather than fails.

A bond with a duration of five is currently priced at $103. If Interestrates rise by 2%. approximately what win be me bond's price?

• A.$113.30
• B.$108.15
• C.$92.70
• D.$97.85